by nomad » Sun Jan 23, 2005 7:44 am
New Device May Save Drivers Big Money
The Catch: Insurance Company Would Become Backseat Driver
A tiny new device may end up saving drivers big money on their car insurance, but there's a catch: You have to let your insurance company become your backseat driver.
She's off to do some errands. But first, Rachel Candelaria stops to plug in a first-of-its-kind gadget. Then, as she drives through lunch hour traffic, that little device below the dash tracks her every move.
"It's amazing that it's so small and can track all your movements when you're driving down the street," Candelaria said.
It's called the TripSensor, developed by Progressive Insurance.
"Progressive's interested in this because we know people who drive less are less likely to have an accident, so we give them more of a discount ... They present less of a risk to us," said Jim Haas, of Progressive Insurance.
Right now, there are thousands of drivers in Minnesota in the pilot program. The TripSensor measures when they drive, how far and how fast. And depending on those factors, they could get a 5- to 25-percent discount.
"The program is entirely voluntary ... you don't have to do it if you don't want to. You get to look at the data before you share it with us and decide then. If you don't want to share it, that's fine," Haas said.
Privacy Rights Clearinghouse Director Beth Givens likes that.
"Progressive has appeared to put the subscriber in the driver's seat," Givens said.
She still has some serious concerns, however.
"Not only could the privacy policy change at any moment, but there could be demands for that data from third parties," Givens said.
In other words, the records can be subpoenaed, for example, in a custody battle or by law enforcement, making your personal driving data public record very quickly.
Candelaria uploaded her information after 10 days. She's been on the road during some of the riskier times of day and spent a little too much time above 75 mph.
"I know I went those 75 mph when I was racing to get to the airport," Candelaria said.
Her estimated discount? "I only get a 5-percent discount," she said.
And after giving TripSense a test drive, she says she'd probably put the brakes on the idea anyway.
"It's just too Big Brother for me," Candelaria said.
The pilot program will last at least one year.
Meanwhile, when it comes to sharing any information with companies, the Privacy Rights Clearinghouse recommends you always be an active participant, reading the privacy policy and terms of service very closely.
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