Insurance coverage tracking device information route driven by the policyholder
March 28, 2014
A California auto insurance coverage firm is rolling out a car monitoring device which permits the business to locate policyholders by GPS and charge them insurance rates per mile driven.
Created by San Francisco-based MetroMile, the Metronome gadget plugs into a vehicle’s OBD-II port and wirelessly sends mileage data to the insurance organization, which costs a base rate plus 2 to 5 cents per mile, and can even record the route driven by the policyholder.
MetroMile also provides a smartphone app which backlinks the policyholder’s cellphone to the device.
“Opening the app, it showed the path I had driven and recorded the amount of miles, how long it took, average fuel economic system and fuel price,” Cnet contributor Wayne Cunningham wrote in his overview of the Metronome. “After driving further, I opened the app once again and noticed the route I covered on a map.”
“The app listed every single trip I took, breaking it up at every single of my stops.”
- A d v e r t i s e m e n t
He also additional that he could see his complete route for a certain day or for every single person driving segment.
Now this isn’t the very first monitoring gadget launched by an car insurance firm but it is one particular of the 1st to openly utilize GPS data to charge drivers per mile driven.
California’s former Insurance coverage Commissioner Steve Poizner green-lighted per-mile insurance pricing back in 2009 in purchase to pressure drivers not to drive as considerably, and no doubt insurance firms will get benefit of the pricing to hike up automobile insurance coverage prices just as Obamacare did for health insurance.
Rural drivers in distinct will be specially harm as a lot of of them drive extended stretches of highway to get to the nearest city.
And there is also the extremely real threat of insurance companies abusing captured GPS information by charging policyholders charges for going, say, one mile above the speed restrict or for driving at evening.
Or, even worse, the data could be handed in excess of to the government.
“The best way to safeguard a consumer’s locational privacy is to not gather the information in the initial area,” privacy watchdogs Privacy Rights Clearinghouse and PrivacyActivism wrote on the subject. “… Since insurers may possibly gather all manner of data, all of that data will be stored along with the actual miles data.”
“Data retention troubles arise due to the fact now not only are we looking at the storage of actual miles information, but of all other information that occurs to be collected.”
Regrettably, automobile insurance coverage firms are simply following a trend set by authoritarian lawmakers who are striving to tax drivers per mile driven with government-mandated monitoring units.
This article was posted: Friday, March 28, 2014 at one:36 pm