Under the Hood: How Your Driving Data Could Affect Your Insurance Rates

In the era where data is king, it is not surprising that the information collected from our daily driving is becoming a popular commodity for insurance companies. A recent article in The New York Times revealed a practice that may make many drivers look back, or more precisely, at their dashboard. Automakers seem to not only manufacture cars; They also shared detailed driving behavior data with insurance companies.

“Uncover the Shocking Consequences of Car Insurance Tracking Devices!” shared by YouTube channel: Car Coach Reports

Driver Data Sharing and Insurance Premiums

Taking Kenn Dahl, a cautious driver from near Seattle, as an example, he is puzzled by the 21% surge in his insurance premiums. arch-criminal? A comprehensive ‘Consumer Disclosure Report’ has been released by global data broker LexisNexis. This 258 page report documents Dahl’s driving habits on the Chevrolet Bolt for over six months, including speeding, sudden braking, and rapid acceleration. LexisNexis uses data provided by General Motors to create risk scores for insurance companies.

This approach is not limited to General Motors. Other car manufacturers, such as Subaru, Acura, Honda, Hyundai, Kia, and Mitsubishi, also offer similar driver rating features, although they require customers to choose to join. Tesla provides its own insurance as part of its service, publicly monitoring driving behavior. However, transparency and degree of agreement vary.

“Driving at night” by Alan Cleaver is licensed under CC BY 2.0

Impact and Concerns

Its impact is profound. On the one hand, this data sharing can bring more personalized insurance coverage, which may reward safe drivers with lower rates. On the other hand, people are concerned about privacy and consent, especially when customers are unaware or only vaguely aware of data collection.

For those who own connected cars, especially General Motors owners, understanding the degree of data sharing and its impact on insurance premiums is crucial. Although some people may see this as a step towards a fairer insurance system, others see it as an invasive over expansion and a real-life ‘big brother’ scenario.

The discussion around this issue is heating up. As we move towards an increasingly interconnected world, the relationship between car manufacturers, insurance companies, and drivers will continue to evolve. The key is to find a balance between respecting customer privacy and utilizing data to achieve greater benefits.

For those who are concerned about driving data, it is recommended to review the terms of service for connected car features and directly inquire with the car manufacturer about exit options. After all, when it comes to the road ahead, it’s best to sit in the driver’s seat – both literally and metaphorically.