Usage based insurance

[Lutotarek]

The rise of Usage based insurance programs appears to offer personalized premiums, but is this just a disguised strategy to monitor and control our driving habits? Handing over data through telematics and smartphone apps feels like giving insurers a free pass to invade our privacy.
These programs claim to reward safe driving, but what about the constant surveillance they entail? Are we comfortable with insurers scrutinizing our every turn and brake? And who guarantees the security of this data? How can we trust that our information won't be misused or compromised?
Sure, lower premiums sound appealing, but at what expense? Is it worth sacrificing our driving privacy for potential savings? UBI seems like a clever ploy, but are we falling into a trap where our driving behavior becomes a commodity? Let's think twice before we trade our privacy for discounted insurance rates.

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[Skye]

Long-term, I don't see the appeal of these policies. While a driver might get in at a lower price point, they will continue to deal with the same issues we all do.

Went on a long trip and drove 5 mph over for 20+% of the time? Ooops. You lose your discount. Ticket or accident? Boof. You're right back with the rest of us. Filing a claim? Uh oh.

The company benefits in at least a few ways:

- Getting a ticket or an accident, my premium might go up a certain amount. But because you came in at a lower point and will rise to match what I'd pay, your effective increase could be much greater than mine

- Selling of personal data. No surprise here

- Mining large populations of personal data, adjusting policy premiums for maximum profit

Regarding the topic of data mining, there's already a huge mass of personal information readily floating around (what we buy in a store, cell phone data related to traffic patterns, CCTV, facial recognition, DNA/family ancestry sites, etc. The list is near endless now).

 

[Zig]

In short know no. Why??? Its their gamble in the game of insurance make them earn it.

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