Kashmir Hill, tech reporter for the New York Times, discusses how cars collect driving data to influence insurance prices without people's awareness. The podcast explores the concerns around monitoring driving habits, data privacy issues, and the impact on insurance rates.
Data from phone apps can be shared with insurance companies without explicit consent.
Driver scores based on driving habits are utilized by insurance companies to personalize rates.
Deep dives
Kathleen Lomax's Concerns with Life360 App
Kathleen Lomax, a mother from New Jersey, felt uneasy when she discovered that the Life360 app, used to track her twin daughters' safety, was sharing driving data with an auto insurance company without her explicit consent. This revelation led Kathleen to request a refund and delete the app from their devices. Despite Life360's assurance that their data wasn't used to set insurance rates, Kathleen's trust was eroded due to the lack of transparency surrounding the data sharing practices.
Drive Monitoring and Insurance Rates
Kashmir Hill, a technology reporter, highlighted how automakers collect driving data, including behaviors like speeding or sudden braking, and share it with insurance companies. The introduction of driver scores, reflecting driving habits, has added a new dimension to calculating insurance rates. While traditional factors like credit scores and demographics play a role, driver scores offer a more personalized approach that can impact insurance costs based on individual driving behavior.
Data Sharing and Consent Challenges
Various apps and automakers, such as GasBuddy and General Motors, have been involved in sharing driving data with insurance companies through intermediaries like Airti. Consent issues arise as users may not always be fully informed or aware of how their data is utilized for determining insurance rates. The complexity of consent mechanisms and lack of clear disclosures raise concerns about the transparency and accountability of data-sharing practices in influencing insurance premiums.
As cars get smarter, automakers - with the help of third-party apps - are leveraging the new data they’re able to collect on people's driving habits to influence drivers’ insurance prices. The problem? Most people aren’t aware their driving is being monitored.
Guest: Kashmir Hill, tech reporter for the New York Times.
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