Auto insurers have been facing resistance from customers who are hesitant to allow them to track their driving. Despite this, insurers have found a way around the resistance by utilizing driving data from other apps. The use of this data has become more prevalent as insurance rates have hit a 50-year high.
For years, auto insurers have been trying to convince customers to allow them to monitor their driving habits. However, many privacy-conscious customers have declined this request. Insurers have managed to work around this by making deals with other apps to monitor driving behaviors. This data is then used to determine a driver’s risk level and how much they should pay for insurance.
As insurance rates continue to rise, surpassing inflation and resulting in higher premiums and deductibles, various factors are being considered in determining rates. Many families are oblivious to the fact that the apps they have running in the background are collecting and sharing their driving data with insurers. These apps rely on driving analysis technology operated by a company called Arity, which collects data to form a driving score and sells it to insurers.
The opt-in consent regarding the sharing of driving data with insurers through these apps is often small and vague, leaving many customers unaware that their data is being shared. Despite this, companies like Arity see the potential value in this data and believe it can benefit both businesses and consumers. They argue that customers can receive rates based on how safely they drive and have greater control over their insurance costs.
While Arity did not immediately respond to a request for comment on this matter, the use of driving data from apps by auto insurers is becoming more prevalent as rates continue to rise. Customers may want to consider the implications of sharing their data before opting in to such programs.