Just as private corporations have been willing to turn over DNA databases to assist criminal prosecutions, insurance corporations will likely be compelled to turn over UBI data to assist criminal prosecutions. See where this is going? It’s pretty likely that the data collected will and can be used in both criminal and civil legal processes. In other words, we can expect the type and amount of data these UBI programs demand to increase as the capability to collect the information also increases. To lessen risks and drive up profits, increased data collection will be deemed necessary as long as it can be collected. As phones and vehicles become more intelligent and interconnected, insurers will likely use the data collected to lessen the exposure and risk posed by poor drivers. Since these programs first appeared, they have steadily increased in both market share and sophistication. Others use a phone’s data, accelerometer, and GPS information. Some companies use car tracking devices directly installed into the vehicle’s event data recorder. While some programs last a few months, others are continual.

Generally speaking, data includes phone usage, acceleration, deceleration (hard braking), time of day, and often speed. The method of collection and type of data collected by car insurance tracking devices varies from insurer to insurer. Data Collection and Use in Legal Processes

This could potentially create major risks for using car insurance tracking devices. In exchange for a discount, two-thirds of policyholders will allow their insurance company to collect otherwise private information regarding their driving habits. In fact, industry market projections surmise that up to two-thirds of auto insurance consumers will be enrolled in a UBI program by 2024.

Not sure what that is? These UBI’s come in cleverly varying names:Īnd, unfortunately, consumers are falling for these ploys. Or maybe your agent has filled you in on a “great way to save on your car insurance!” At the cost of a fractional reduction in your insurance premium, you’re asked to install a device in your car or an app on your phone that tracks your every movement and “rewards safe driving!” But don’t get caught up in the gimmicky marketing ploys – the risks of using car insurance tracking devices abound! Drive Safe, Save Money, Reliquinsh PrivacyĮvery major car insurance company in the United States now has what is referred to as a “usage-based insurance program,” or UBI for short. You’ve probably seen advertisements for them everywhere.

Geico drive easy passenger