Your Driving Habits Could Be Secretly Scored
Do you know that, in addition to a credit score, you might also have a driver score? This score reflects the safety of your driving habits, measuring things like speeding, hard braking, phone use, and late-night driving.
While it’s easy to check your credit score, finding out your driver score isn’t so simple. However, auto insurance companies have access to this data, and it could directly impact how much you pay for your insurance.
For the previous two decades, auto insurers have been encouraging people to participate in programs, often known as usage-based insurance, that monitor daily driving activities. The aim is to have rates that more accurately reflect the level of risk. However, many privacy-conscious consumers have been hesitant to sign up.
As a result, the insurance industry has adopted a different approach, gathering driving data from automakers or apps that drivers already use on smartphones. Experts say that most people are unaware that the insurance industry can track them this way.
After The New York Times reported that General Motors was sharing driving behavior with LexisNexis, customers filed numerous lawsuits, leading the carmaker to end its contract with the data broker. Despite this, data collection continues from other automakers and apps.
Driving behavior analysis, also known as telematics in the insurance industry, could ultimately benefit consumers. It has the potential to create more personalized and fair rates. Additionally, if drivers face higher costs for risky driving, they might drive more cautiously, which could lead to safer roads. However, this positive outcome relies on drivers being aware that their behavior is being monitored.
