The High Privacy Price of Auto Insurance Monitoring Discounts

11 July 2012 Publication
Authors: Peter Vogel

E-Commerce Times

Data about location and driving habits speak volumes about drivers’ personal and private lives. While some individuals do not care a great deal, perhaps they should consider how this data may be used in the future — whether by the government in a criminal case or a spouse in a divorce lawsuit.

A recent report in The Wall Street Journal sheds light on a new “Big Brother.” Some of the largest automobile insurance companies are now using driving data obtained from GPS and other devices to create preferred pricing for those who submit real-time driving data that demonstrate their good driving habits and low risk.

So, if drivers travel at the speed limit, don’t make erratic turns, and go short distances, they may get discounts of as much as 30-50 percent. The economics may be very attractive.

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