Car Insurance Companies Want to Track Your Every Move—and You're Going to Let Them

City Lab ^ | July 9 2014 | Leo Mirani

[PoloSec]

The proposition is simple: Install a device in your car and allow your insurance company to monitor your driving—how fast you drive, how hard you brake, how sharply you corner, and so on. In exchange, it will give you a discount on your premiums.

That might sound alarming, but it shouldn’t be surprising. Considering internet users already happily trade data on every online move they make in exchange for free services, the only surprise is tracking-based insurance isn’t already more widespread. Progressive Insurance, the biggest such insurer in the United States, says it found that

After analysis of billions of miles in driving data, Progressive has found that key driving behaviors—like actual miles driven, braking, and time of day of driving—carry more than twice the predictive power of traditional insurance rating variables, like a driver’s age, gender and the year, make and model of the insured vehicle.

The average discount on premiums for a Progressive customer who agrees to be tracked is between 10% and 15%.

In future, if you don’t agree to be tracked, you may not only pay higher premiums; perhaps you won’t even be eligible for insurance from most companies. It could be like having a shady credit history, or failing to provide the basic “know-your-customer” information required to open a bank account. “In the end, serving the ‘naysayers’ may become a specialty market niche for some carriers,” suggests a recent report (pdf) on usage-base insurance programs from Deloitte.

[Lucky9teen]

This was offered by my insurance company, but I opted to pay the higher premium. F that nonsense.

[EagleUSA]

The Grand Socialist picture. Progressive management is about as far left as you can get, so I am told.

[Vendome]

I would class action them.

Nunyuh....

[wally_bert]

I’ll do my best to say no to a monitor for as long as possible.

[HiTech RedNeck]

They’ll tell the InsCo if they think something is wrong, but will they tell YOU? Even if you wanted your life to be a fishbowl, who says the glass isn’t from a fun house mirror?

[gdani]

What is now voluntary will eventually be mandatory.

[PapaNew]

You're Going to Let Them

I don't think so.

[steve86]

I’ve pretty much decided to drive naked from here on. Fines for not having insurance way less than premiums and I only get stopped once every 20 years or so. Insurance status isn’t checked here when purchasing license tabs, etc.

[redgolum]

The real goal is to base your vehicle taxes on where and how much you drive.

They experimented with it a few years ago, and got massive negative responses. Now by mandating it through insurance, it is ok (since insurance is a tax/or something)

[Political Junkie Too]

It's interesting that this article only mentions performance data, not location data.

Measuring acceleration/decelaration is one thing, as long as they don't track frequent destinations, driving in "bad" sections of town, etc.

-PJ

[Moonman62]

They don’t track where you go. There is no location information recorded, though that could change.

[IYAS9YAS]

I would class action them.

Any pre-OBDII system vehicle owner should be able to sue the pants off them for discriminatory practice.

[Theoria]

Throw in a.gov kill switch on the black box and we will have a deal!

While I'm at it, the implant in arm monitors my eating, sleeping, and lifestyle habits to get a 'cheaper' rate via ObamaRomneyHeritageCare.

[E. Pluribus Unum]

And yet we still aren't allowed to see Ubama's real birth certificate.

[HiTech RedNeck]

But it will not mind if you are gay.

[bert]

Did you know that if you are in an accident with no insurance, the other person’s insurance co can and will sue you for every nickel it cost

They will get a judgement and then collect it all bu liens, garnishments and attachments of assets.

[ConservingFreedom]

I would class action them.

For offering to buy information from you? Where's the tort?

[FrankR]

I’m pretty sick of those commercials with bitch Flo, and the damn lizard too!

[jsanders2001]

> This was offered by my insurance company, but I opted to pay the higher premium. F that nonsense.

Yes. F this nonsense. You give into that the next thing you know they’ll want to install cares in your house to see what you eat, tell you what type and when you need to exercise, and what you can and can’t eat. The slippery slope just got steeper and they are Teflon’ing the ramp....