Though consumers are keen to save money on their policies, they wonder if they might be sharing too much.
With the increasing popularity of usage based insurance programs, individuals and organizations are starting to look beyond the potential for saving money and are discovering that a large amount of information is being shared with the insurers.
This is causing them to question exactly what and how much data is being collected.
A vehicle is already naturally collecting a great deal of information about the way that a driver uses it. For instance, the number of miles it has driven. However, with the devices that come with a usage based insurance program, vehicles will be revealing a great deal more about the behaviors of the motorists behind the wheel.
At the same time, the information collected through usage based insurance can lead to massive savings.
The purpose of the usage based insurance devices collect data such as when the vehicle is driven, how often, what time, how far, at what speeds, and some even register where it was taken, how often the driver had to brake hard and how frequently left and right turns are made. This allows motorists who don’t drive a large number of miles, who drive safely, and who head out during safer hours to be able to save money on their coverage due to the lower risk associated with their habits.
Due to issues with online privacy struggles, identity theft, and other security worries, many individuals and consumer groups are starting to see concerns about data collection such as is the case with usage based insurance devices. Privacy policies are becoming extremely high concerns and drivers are beginning to wonder exactly how the data collected by these insurers will be used immediately as well as in the long run.
This is causing some to hesitate to take advantage of the cheaper coverage because they don’t feel confident about the information collection through the usage based insurance devices as well as from the vehicles, themselves. With all of the electronics installed into the latest cars, vans, trucks, and SUVs, people are shocked at how much data is being shared about their habits and their location.