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Drivers routinely use their cell phones in the car to listen to music and get directions. But the device could listen to your responses, track your driving behavior, and ultimately share that information with your insurance company.
A recent report in the New York Times cited three popular apps, Life360, MyRadar, and Gas Buddy, as recording driver data and sharing it with Allstate-owned analytics company Arity. Arity then uses that information to create a consumer “driving score” that insurance companies can purchase “on the fly.”
Arity says on its website that it receives data from more than 40 million drivers through its consumer mobile apps and pay-as-you-go insurance (UBI) programs. Driver Score profiles “risk-related driving behaviors” such as speeding, hard braking, extreme acceleration, and using a phone while driving.
When Arity’s partner apps are used in the car, the software could potentially end up sharing the driver’s every swerve, brake, and acceleration with analytics companies and, ultimately, insurance companies.
Using apps can affect your car insurance premiums
Users must opt in to each app’s location services, but the apps’ privacy statements and disclaimers do not explicitly state that the apps record driving data.
Apps use common disclosure language such as “We collect certain information” and “We may collect third-party data and reports.” The disclaimer acknowledges that Arity “powers” these apps with analytics and “enhancement services,” but doesn’t explain what Arity is or does. The Times said the disclosure also does not make clear whether the data could ultimately be purchased by insurance companies and used for rating purposes.
Drivers with low Arity driving scores may face higher car insurance premiums or have a harder time securing coverage.
Auto insurance premiums rose 24% nationwide in 2023, according to Insurify data. And interest rates will rise another 7% by the end of 2024, Insurify data analysts predict. Your driving record is the most important factor that insurance companies consider when setting rates. Insurance companies typically offer discounts and incentives to drivers who enroll in UBI programs or use telematics programs to monitor their driving habits.
“This data collection method essentially gives insurance companies access to telematics data for drivers who may have opted out of enrolling in UBI or telematics programs,” said Jessica, Head of Data Journalism at Insurify.・Mr. Edmondson said.
However, there is no guarantee that the app will accurately attribute driving behavior data. The app tracks general motion data regardless of who is behind the wheel.
“If you have one of these apps on your phone, just having a high-risk driver in the car could affect your auto insurance rates at future renewal times,” Edmondson says. he said.
“Phones have accelerometers, and there are a lot of sensors that provide meaningful data, but how good acceleration is from one app to another can vary greatly, and there’s no way to know that.” said Beacon CEO Jim Anderson. he told The Street. “That’s a real problem.”
Other data tracking sources
Ariti isn’t the only company to cause controversy by collecting driving data.
General Motors (GM) is currently being sued for selling data collected through its OnStar subscription-based communications system to insurance companies. The lawsuit alleges that OnStar tracked drivers’ driving behavior without their knowledge and sold the data. Some drivers said data collection had an impact on their auto insurance premiums, increasing them by up to 21%.
Other automakers, including Honda, Kia, Mitsubishi, Acura and Hyundai, are also facing scrutiny for allegedly selling driver data collected through in-vehicle smart features to insurance companies. This includes if the driver is unbuckled or brakes and accelerates rapidly.
What’s next? Protecting your information, data and fees
As investigations and possibly lawsuits continue, experts advise consumers to protect their information by turning off location services, Bluetooth, motion trackers, fitness trackers, and background app updates. .
“Disable access to Bluetooth or your network in general. This is how many apps are actually tracking you, even if they don’t know your GPS location,” Feroot Security CEO Ivan Tsarynny told The Street. Ta.
Other helpful steps include:
“(Consumers) need to be more vigilant about protecting their privacy,” George Bradner, deputy assistant commissioner and head of the Property and Casualty Division of the Connecticut Department of Insurance, told the Times.
In April, Connecticut insurance regulators warned consumers that new cars could track people’s driving and affect their insurance payments.
This article originally appeared on Insurify.com and was distributed by MediaFeed.org.
