Read this before you renew your car insurance
You’ve probably seen this pitch from your insurance company: “Drive safely and save. Sign up for our smart driving program today!”
You’ve got a squeaky-clean record, so what’s the harm, right? Before you sign up, let’s pop the hood.
😳 What they’re tracking
These programs use an app on your phone or a gadget in your car to monitor how you drive. It tracks:
- Speed
- Hard braking
- Quick acceleration
- Late-night driving
- Phone use behind the wheel
That data gets mixed with your age, ZIP code and driving history to build a score. If your score’s high enough, you might get 10% to 30% off your premium. Sounds good, but there’s more to it.
🤑 Your driving habits = gold mine
State Farm dings you if you go just 8 mph over the limit, even to avoid an accident. GEICO and Allstate frown on nighttime driving. That’s fine if you’re in bed by 9, but not if your kid’s practice wraps up after dark or you work the late shift.
You can bet every insurer, including Progressive, Travelers and, yes, State Farm, tracks phone activity. That means if your screen lights up in your pocket, you’re “distracted.”
Use Do Not Disturb While Driving mode and stash your phone in a compartment or mount. Even pocket motion can trigger a flag.
🪄 Your data doesn’t disappear
Here’s where it gets sketchy. Some insurers raise your rates if they think you’re risky, even if you never file a claim. And they’re not always transparent about how long they keep or share your data.
GM got slapped by the FTC this year for selling driver location and behavior data. And Texas sued Allstate, claiming they bought tracking data from mobile apps without people knowing. Yikes.
🫡 Save without tracking
- Bundle home and auto insurance.
- Look into pay-per-mile if you don’t drive much.
- Take a defensive driving course (easy discount).
- Shop around every year, and compare real quotes.
🚘 A car insurance company is offering a cheaper deal to anyone who promises not to park at a fish restaurant. They call it their “No Clams Bonus.”
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Tags: data, home, insurance, spread, tracking
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