Common Apps May Share More Driver Data with Insurers Than Expected (NY Times)

Common Apps May Share More Driver Data with Insurers Than Expected

Monday, June 17th, 2024 Auto Insurance Industry Risk Management Technology

Many drivers are unaware that auto insurance companies may be receiving their driving data from commonly used apps, even if they haven’t signed up for usage-based insurance programs. According to a Business Insider report, apps like GasBuddy, Life360, and MyRadar collect driving habits and share this information with insurers through Arity, a data analytics company owned by Allstate. This indirect tracking allows insurers to better assess risk and set premiums accordingly.

While privacy concerns have led to reluctance in adopting usage-based insurance plans, insurers have found alternative ways to gather driving data. The New York Times revealed that General Motors had previously shared driving behavior data with LexisNexis, leading to customer lawsuits and the termination of the contract. Despite this, data collection continues through other automakers and apps.

The data collected includes metrics such as how often drivers brake suddenly, speed, or use their phones. This information is valuable for insurers to accurately determine premiums and encourage safer driving. However, the consent process for sharing this data is often unclear, leaving many consumers unaware of the extent to which they are being monitored.

Experts emphasize the potential benefits of telematics for creating fairer insurance rates based on individual driving behavior. Yet, concerns remain about the potential for new forms of discrimination and the need for transparency in data usage. Consumers are advised to check privacy settings on their vehicles and apps to better protect their information.

Claims Pages Staff Writers are dedicated professionals covering a broad spectrum of insurance topics, including auto, catastrophe, education & training, fraud, legislation, liability, life & health, litigation, property, risk management, technology, underwriting, and workers' compensation. With over 25 years of distribution, our publication brings you accurate and timely information to keep you informed and ahead in the claims industry.

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