Consumers appear leery of intrusive insurance apps

Car insurance, and their related premiums, are a necessary evil in today's society and it always seems as if prices go up and never down.

Yet there is a way to control your insurance premiums at least somewhat, though the solution I'm talking about involves trusting your insurance company and that's not something I – and apparently many others – am comfortable with.

Telematics, also called usage-based insurance (UBI), tracks your driving behavior using a device installed in your vehicle or a mobile app

It's the tracking technology, or "telematics" some insurance companies offer that keeps an eye on where and when – and how – you drive.

Can you say Big Brother?

According to a group called AutoInsurance.com, "Telematics, also called usage-based insurance (UBI), tracks your driving behavior using a device installed in your vehicle or a mobile app. Data on your driving habits, such as speed, braking hard, or cell phone usage while driving, is transmitted to your insurer and is used to calculate your risk. This generally results in a discount on your premium if you drive safely, but some companies can also raise your rate if they detect risky driving behaviors."

My question is, do you want to save some money, or be a free person?

It appears that only a minority of those pesky free Americans are embracing what seems to me to be a way for insurance companies to minimize their payouts by getting their customers to submit to their overbearing will. And guess where it started.

"Progressive was the first insurance company to introduce a telematics program in the late 1990's with a plug-in diagnostics device," AutoInsurance reports, "and later pioneered wireless telematics technology with the official launch of its Snapshot program in 2008."

Does it seem ironic that when you see the word "Progressive", whether in business, politics or whatever, that it usually means the folks spouting the word are the most regressive when it comes to personal freedom? It sure does to me.

AutoInsurance.com's survey showed some interesting results

Then there's this bit: "With the rise of smartphones, the way insurers track driving data has become increasingly invasive from a privacy perspective."

What a surprise!

Anyway, AutoInsurance.com's survey showed some interesting results. They asked "more than 1,200 drivers in the U.S." what they thought about auto insurance telematics (though if it's like most of the surveys I've seen, there's probably limited input the surveyed person can give outside of ticking pre-written boxes). They also looked at "which telematics programs gather the most and least personal data and what they do with it."

Key Findings?

• Only 12 per cent of drivers are currently enrolled in an insurance telematics program, but 27 per cent are open to trying one in the future.
• Two in three telematics users said they noticed a decrease in their monthly premiums after enrolling, with the median saving pegged at $27 per month ($324 a year).
• 70 per cent of drivers not currently using telematics would consider doing so if they were guaranteed a discount on their premium, while 56 per cent would consider telematics if they were given a clear explanation of how their data would be used.
• Nearly 70 per cent of drivers are concerned about the privacy of personal data tracked through telematics, and 59 per cent are worried that driving data might not be collected accurately.
• 51 per cent also said that the cost-saving benefits of telematics could potentially outweigh their privacy concerns.

Misuse is a legitimate concern, especially in this era in which it seems that pretty well every institution and organization we've known and trusted over the years turns out to have feet of clay – or worse. And, in fact, AutoInsurance notes that the issue is already the subject of an ongoing GM lawsuit in which they say "a driver claimed that GM tracked his data without his consent and sold it to insurers, making it nearly impossible for him to get coverage."

AutoInsurance is quick to note that the alleged privacy breach was by a car maker and a data broker, not an insurance company, and that so far there don't "seem to be any cases of data misuse by an insurer."

I feel so much better!

Obviously, I'm not on board with this telematics stuff, and I have nothing in particular to hide other than the fact that I was born with a lead foot. But where and how I drive is no one's business as long as I'm not hurting anyone/thing else.

As a free market guy, I have no issue with companies trying to get you to knuckle under, and I can't blame them for trying to maximize their profits by minimizing their "expenses".

But, to channel Yogi Berra, "include me out."