Save on Insurance or Sacrifice Privacy? The Pros and Cons of Letting Insurers Track Your Every Move

This week’s insight is about saving money by allowing insurance companies to spy on you and your family. ?A scary thought...on the surface.

Technology works wonders and frees up time so we can focus on important activities, like watching more hours of Netflix. ?But seriously, tech is all around us and often more intrusive than we prefer.? ?Home insurance companies, for instance, can now leverage satellite technology and drone imaging to monitor how frequently we have houseguests or a family member temporarily shacking up. ?For those in hurricane-prone areas, home insurers will do all they can to manage risk.

The other more widespread technology adoption in the insurance world has to do with your wheels.? Auto insurance companies are increasingly offering programs that monitor your driving habits. ?The hook is that if you are a conservative driver, then you can potentially snag discounts.

Here’s how it goes – your insurer sends you a tracking device, you attach it to the dashboard area of your vehicle, and then you download an app to link the device to your phone.

Potential discounts are said to be upwards of 30% on your premium, depending on the auto insurance company, and simply knowing that you’re being tracked might make you a safer driver. ?In the event of an accident, the device can even collect data to reconstruct what happened, which might make the insurance claim process smoother.

The drawbacks center on privacy. ?Do you want to open yourself up to your insurer knowing your every move along with how you drive? ?In a world where so much of our data is being targeted by hackers, this is yet another outlet in their crosshairs.

And what if you are not exactly the most prudent commuter? ?While good drivers might save a few bucks, if you routinely put the pedal to the metal, there’s the chance your rates could tick higher after a few months of tracking. ?Finally, and I am not suggesting you fudge the numbers, but if you put on more miles than you claim, then that too could result in higher premiums down the line.

Big picture, with insurance premiums going up and up, I’m sure you’re looking for ways to save. ?If you are a safe driver and are OK with giving up some privacy while on the road, then installing a driving monitoring device might be worth it.