There’s a new “Big Brother” on the scene. 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. However the of loss of personal privacy may be an unintended effect of immense proportions.
Drivers give up any hope of privacy on the public roads. These days you must assume someone is watching wherever you go. Car computer systems already keep a virtual "black box" to record vehicle status for a short rolling period of time. Even if GPS tracking is not a factor your auto license plate will be appearing in video monitoring systems all over, especially on toll roads and parking ramps. No matter where you go someone can find out if they try hard enough.
It all appears to be a good idea but where does it end. My concern extends to when does such monitoring become a requirement. I think back to Homeland Security and the public's willingness to give up some freedoms for security. I personally prefer to keep my life private and I do not allow location like service used in tablet apps today to track my location. Facebook, you can tell people where you are. Frankly, who cares! Except perhaps someone that wishes to find you (good or bad) or perhaps break into you home while you are away (all kinds of possibilities). I expect the lawyers will love this monitoring. It will provide many interesting cases on both sides of the aisle. Great article Peter!
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The High Privacy Price of Auto Insurance Monitoring Discounts
Posted by: Peter S. Vogel July 11, 2012 05:00 AMThere’s a new “Big Brother” on the scene. 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. However the of loss of personal privacy may be an unintended effect of immense proportions.