An auto insurance company observes that after customers purchase full-coverage insurance, they tend to drive less carefully, leading to a higher frequency of accidents and claims. To address this, the company proposes offering a significant premium discount to any driver who installs a company-provided telematics device in their car. This device tracks driving behaviors such as speed, braking intensity, and mileage.

Critically evaluate this proposed solution. In your evaluation, explain the underlying informational problem the company is facing and judge the effectiveness of the telematics device in resolving it. Include at least one potential strength and one potential weakness of this approach.