The insurance industry is becoming more interested in gaining insights into people’s driving habits, and they are turning to automakers and smartphone apps to gather this information. Apps like Life360 have safety features that track driving habits, providing a driving score that reflects how safely individuals drive. While many people are familiar with their credit score, not everyone is aware that they may also have a driving score that can impact their insurance rates.
Auto insurers have been encouraging people to enroll in usage-based insurance plans that monitor their driving behavior in real-time. However, privacy concerns have deterred many consumers from participating in these programs. As a result, insurers have started obtaining driving data from automakers and existing apps on people’s phones without their knowledge.
The practice of analyzing driving behavior, known as telematics, could potentially benefit consumers by offering personalized and fair insurance rates. Moreover, if individuals know that their driving habits are being monitored and may impact their insurance costs, they may be more inclined to drive safely, leading to fewer accidents on the roads.
Following a revelation by The New York Times that General Motors was sharing driving data with LexisNexis, several lawsuits were filed, prompting the carmaker to end its contract with the data broker. Despite this setback, data collection from other automakers and apps continues. It is crucial for drivers to be aware that their behavior is being tracked to ensure transparency and accountability in the process.
Overall, understanding your driving score and how it can impact your insurance rates is essential. By being informed about how your driving habits are being monitored and evaluated, you can potentially influence your insurance costs and contribute to safer roads for everyone. So, it’s worth exploring how you can uncover your driving score and make adjustments to drive more responsibly.