If you have been watching any of the bowl ads on TV recently, you may have seen a push for usage-based auto insurance. Voluntary data collection is the wave of the future for insurance companies, giving good drivers lower premiums. But what about the privacy concerns?

The insurance industry states customers can save up to 30% for proving they are safe drivers. New technology can determine the time drivers are on the road, how many times they make a hard break and how far they are driving in any given period. Such information is advantageous for low-mileage drivers, such as the elderly, for securing affordable insurance rates.

Currently, the program is voluntary and risk-free for customers. However, liberty lovers and consumer advocates alike are skeptical that such data could be used against good drivers for instances that are not the driver’s fault. Additionally, soccer moms who are on the road simply carpooling children to school and activities could be unfairly treated simply due to the sheer number of hours they are forced to drive every day.

As of now, there is no legislative action on the horizon to address this issue, but it will become more and more a part of the discussions as companies look for advantages over the competition.

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