Auto insurance companies all over Ontario are turning to telematics technology as a way to score driving habits and offer discounts to customers based on safe driving. Over the past few years, many drivers have embraced the change and enrolled in usage-based insurance programs. However, some people remain skeptical and are hesitant to adopt the new technology.
Well, the most common answer is “I don’t want to sacrifice my privacy just to save a money on car insurance.”
But are you really sacrificing more of your privacy?
If you are using a driving app, are you giving up any information that you don’t already allow your iPhone, Android, or other third-party apps to collect?
Right now you’re giving your data away for free.
Over 75% of Android apps contain at least one third-party “tracker”. These trackers collect personal information, including location and behavior, to target users for ads and other services. (This according to a recent study by Exodus Privacy and Yale University’s Privacy Lab)
The truth is, the setup of most popular apps subtly include location and other permissions that often go unnoticed by users.
Get discounts for your data.
It seems strange that we can be so quick to grant location permissions to access a brand new app we downloaded, but hesitate at an opportunity to use the same info to get more discounts on car insurance?
Hey, we get it. Feeling monitored or tracked all the time is not something anyone wants. But as you can see, it can be difficult to avoid in today’s tech-obsessed world.
One of the features drivers like most about usage-based insurance apps is that you’re aware of the data that’s being collected. Plus, in some apps, you can even use the data collected to monitor and improve your driving habits.
And perhaps most importantly, you can get up to a 30% discount on your car insurance. So you stand to gain something in exchange for your information.
Your rate can’t increase.
Your rate can not increase based on the data collected. So, even if you scored a zero in all driving categories, your premium will never go up as a result.
Also, these driving apps are not exactly monitoring your every move. They only collect data that can be used to assess your driving habits and determine your driving score. And, your policy can not be cancelled or non-renewed based on the data collected.
Yes, data collected in driving apps does help insurance companies predict which drivers are the best risks. And this is definitely a benefit to them. But, getting more discounts on your car insurance is a benefit to you. So it seems like a pretty good trade.