OT: Car manufacturers are sharing your driving data with insurance companies...

[Mark McM]

Originally Posted by AngryScientist

I pay for auto insurance every month, just like I always have. Why on earth would I want an app on my phone for my insurance company? I have absolutely no interest in having a day-to-day relationship with them or need to interact with them, pretty much never outside of being involved in an accident.

Theoritically, in a truly competitive insurance market, if you are a low risk driver (i.e. not likely to file a claim or have claims filed against you), allowing an insurance company to monitor your driving could be to your advantage. Insurance companies like low risk drivers, because they are less likely to have to make payouts for these drivers. To attract low risk drivers, insurance companies may offer lower rates to low risk drivers. If an insurance company has no information on a driver's driving habits, then they will only offer average rates to them. (And on the flip side, they are apt to charge higher rates to high risk drivers).

Here in Massachusetts, auto insurance rates is regulated. So drivers have no motivation to sign up for driving apps, because there is no benefit to them (and possibly deficits).

[saab2000]

I just pay my bill automatically (USAA) and just checked it. It’s likely I could look back on my bills over the years but I haven’t done that.

It does indeed appear that my 6-month premium is pretty high these days. Hmmm……. I have made two claims with USAA in my history with them, the most recent one approximately 15 years ago. Both claims were relatively minor, not write-off accidents or anything like that.

[Peter P.]

Stop complaining and invest in the insurance companies.

[veloduffer]

Originally Posted by Gwerziou

Insurance prices are going up because insurance companies are capitalist pigs.

If you're insurance company is a mutual, then better than expected underwriting years usually results in a dividend to the policyholder since the policyholders are the owners of the insurance company.

[rounder]

Our insurance rep recommended that we sign up for a program with our insurance company that would allow them to monitor our driving performance. I was told that it would reduce our insurance rate by some (insignificant to me) amount. My wife signed up for it. She drives slow and no more than 5,000 miles per year. I did not want to be snooped on by some on-board device, so I passed.

[Philster]

I’m might have missed if this was discussed above. You can go to Lexis Nexis and request a report of your records. You can do it on the website or by mail. I’m doing it by mail because who knows what their website collects? Also, I figure this costs them more.

Can’t wait to see what they have.

[Mikej]

Google and Apple is selling your data regardless of your car telematics. Resistance is futile.

[reuben]

Yeah, these days the consumer is the product. Bought, sold, packaged, bartered, and used against oneself. There are some good things about all of this, but the privacy invasions are horrendous.

Default behavior is opt in, not opt out.

My phone manufactuner keeps pestering me to accept their new terms and conditions. I keep declining, but after a while I figure they opt me in anyway. I'm pretty sure theyre not allowed to lock it without my permission (I own it, fercryinoutloud), but who knows?

[SuperRecord]

Originally Posted by unterhausen

I suppose the app didn't hurt anything other than the state of charge of my phone, but since all the events I got were false, I didn't figure I would ever get a discount from it. I didn't need the annoyance.

I just downloaded the USAA app last week. Twice I've been flagged for "Harsh Braking" yet I haven't remotely used my brakes in a harsh manner. I plan to leave the app active for another few days just to see how buggy the program is. My insurance has gone up aproximately 24% in the last 2 years. USAA told me it is because of my advancing age. (66)

[Louis]

Originally Posted by SuperRecord

USAA told me it is because of my advancing age. (66)

I always thought that older drivers were considered safer than younger ones. Are they implying that it's a U-shaped risk curve, or were just saying that as an excuse to extract more $$$ from you no matter what your record was?

[AngryScientist]

Originally Posted by SuperRecord

USAA told me it is because of my advancing age. (66)

That's pretty funy, especially coming from USAA who caters to the military crowd.

I wonder who the better driver is, a vet in his mid 60's or a young hotshot navy dude in his early 20's?? LOL.

Speaking from experience...I'm not in my 60's yet, but I can gauran-damn-tee you I'll be a better driver there than when I was in my early 20's.

[Peter P.]

Speaking of data sharing, there might be some benefit to all of us.

To drivers who go habitually drive recklessly or fast, once you associate your high premiums with your driving habits, perhaps you'll tame your driving.

What I predict will happen is, insurance companies will offer the "potential" of lower premiums if data is shared or if chosen to opt out, premiums will be extremely higher, forcing drivers to opt in.

[jkbrwn]

@Angry - I do think mandatory testing should happen for older drivers, though. The number of times I've seen people who simply shouldn't be behind the wheel anymore is countless. One of the two times I've been hit by a car while riding, the guy was in his 80s, could barely see (huge thick prescription lenses) and moved as slowly as a sloth. Dangerous for him, more dangerous for anyone in his path.

[SuperRecord]

Originally Posted by Louis

I always thought that older drivers were considered safer than younger ones. Are they implying that it's a U-shaped risk curve, or were just saying that as an excuse to extract more $$$ from you no matter what your record was?

My driving record is spotless since one speeding ticket in 1988 when I was late for a date. Side note the date was not worth the ticket lol. My credit score is fine as well. In my naivety I assumed my rates would continue to trend downward as I drove past my youth. At least at USAA their algorithms say otherwise.

[unterhausen]

Originally Posted by Peter P.

Speaking of data sharing, there might be some benefit to all of us.

To drivers who go habitually drive recklessly or fast, once you associate your high premiums with your driving habits, perhaps you'll tame your driving.

We really don't know how they are using the data, but from my experience with their app, my insurance company doesn't have a clue. But car data is surely a huge improvement over just using gps and accelerometers.

I think having massive amounts of data may be good sometime down the road, but they just haven't been collecting it long enough to make good judgements with it yet, I don't think. You give good examples, it really does seem like there are probably 5-10% of drivers that are costing the rest of us a lot of money. Can they really discriminate between people taking risks weaving in and out of traffic from other people that are probably driving safely, like me. I'm a very, very good driver.