The truth behind smart driving programs and what they track
I’ll bet your insurance company has sent this one your way: “Drive safely, get rewarded. Sign up for our smart driving program today!” You’ve got a squeaky clean driving record, so what’s the harm?
Smart driving programs track your driving habits and give you discounts for being a good driver. But there’s more to it than just saving a few bucks. Buckle up — I’ll break it down for you.
Know what’s being tracked
These programs monitor your driving habits using an app on your phone or a small gadget installed in your car. That data is combined with other factors, like your age, ZIP code and driving history, to calculate a score.
If the score is good enough, you might get a discount — think anywhere from 10% to 30% off your premium. Pretty sweet, right? But the discount comes with hidden costs.
They watch your every move
State Farm dings you if you go 8 miles per hour over the speed limit. So what happens if you floor it to avoid an accident?
GEICO and Allstate both tell you to avoid late-night driving since it’s the riskiest time for fatal crashes. But what if you work late or your kid has soccer practice that finishes after dark?
Ask your insurance company exactly what data they collect and how it’s used. Look for details on:
- Speed, braking and acceleration habits
- Late-night driving penalties
- Phone usage tracking
Maybe more importantly, what happens to your driving data after it’s collected? Does your insurance company share it with third parties or use it for marketing? Can it be sold or handed over in legal situations? Review those details before you agree to anything.