How to know if your car is tracking you, risking higher insurance
By Isabel Contreras | NerdWallet
A recent New York Times investigation revealed some automakers sell data on driving behavior, like speeding, hard breaking and late night driving, which can then be purchased by car insurers. This data, known as “telematics” data, could be used to price already high auto insurance rates for the drivers of those vehicle models.
Car insurance companies already use telematics data in their pay-per-mile and telematics programs. Good driving behavior can result in discounts and perks, while bad driving behavior can mean increased rates or even dropped coverage. Customers sign up for these programs likely with the understanding that they are giving up their driving data, since they must either download an app or install a telematics device in their car in order to participate.
But the New York Times investigation found instances where drivers were unknowingly tracked by their car, and their driving behavior was sold and led to increases in their auto insurance premiums. Here’s what to know.