How to Reduce Moral Hazard in Insurance

Being a careful driver helps you to pay less for car insurance next year. Insurance companies are asking customers if they can monitor their driving through an ap on their phone or a cammera in their car. This sounds pretty evasive, but it allows collect data showing if you're driving carefully or not. The government can also band certain behaviors. For instance, laws that prevent speeding help prevent the moral hazard that people with insurance might drive too fast.