Did you know that your driving behavior may be tracked by a smartphone application and passed on to insurance companies for use in setting rates?
According to a recent report by The New York Times, some popular apps collect driving data and pass it on to companies like Allstate-owned Arity without your knowledge or consent.
How does driving data collection take place?
Applications like Life360, MyRadar and GasBuddy use telematics to relay information from smartphone sensors and movement. This information is passed on to Arity to create a "driving score" that measures your behavior behind the wheel, such as distracted driving.
Acceleration and sudden braking Insurance companies use this information to determine your car insurance rates.
Consent that you may not be aware of
Even though these companies claim you have consented to sharing this information. But often this detail is hidden in small font in terms of use.
For example, in the GasBuddy app, the drive's fuel efficiency rating feature, which is "powered by Arity," users must agree to.
Deals are difficult to see before using this feature. With only a reference that "Some information" will be shared.
What is this information used for?
and lead to insurance rates that may be cheaper or more expensive. It depends on the driving behavior that is being tracked.
This is proposed to be fair in pricing by reducing the importance of socio-economic factors such as credit scores or jobs, but there is criticism that consumers may not feel it is fair due to a lack of disclosure and clarity in consent.
Instructions for protecting your data
Check app permissions: Make sure the apps you're using aren't asking for unnecessary permissions. or if there is a request for permission related to tracking driving behavior Consider accepting or rejecting as appropriate.
Opt-out: If it turns out that you have not directly consented to this data tracking. You can opt out of related features or services.
Read the privacy policy: Although it is disclosed in small fonts. However, reading the privacy policy carefully will help you know how your information will be used.
Conclusion
Tracking driving behavior through a smartphone application may seem like an invasion of privacy.
However, there are advantages in creating fairness in setting insurance rates.
It's important to understand how your data is used and what consent is provided so that you can effectively protect your privacy.
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