Concerns over privacy as auto insurers use tracking devices to offer discounts

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shutterstock_50423620There is a popular program that offers premium discounts to drivers who agree upon installing devices to record their driving patterns. This has worried the privacy advocates who claim that this is highly intrusive and this could also lead to other infringements in the future.

There are around 250,000 Progressive clients who have already participated in the Snapshot Program initiated by the company, and they are now hoping that their good driving habits will help them avail discounts.

As part of the Snapshot program, the drivers agree to install a monitoring device in their vehicle’s onboard diagnostic computer which not only records but also transmits data to Progressive for a period of six months. The miles driven, are then measured along with the driving times as well as braking and acceleration patterns and speed.

This is a voluntary program and a discount-only program, stated Brittany Senary, the spokeswoman from Progressive, which is Ohio’s second largest auto insurance company.

However, Paul Stephens, Director of policy and advocacy from a California-based Privacy Rights Clearinghouse has stated that the device also tracks the time of the day, when the vehicles are driven. He feels that is somehow unfair as people generally work in shifts and work odd hours. He worries that in the future; insurance companies might monitor the rest of the things as well, which would infringe upon the driving behavior of the clients.

Stephens states that ‘we are on a slippery slope’ as the insurance companies have begun by collecting much more information than they actually need, and now he wonders as to where this could stop.

Hypothetically, the information could be subpoenaed through the police investigations and law enforcement agencies.

These devices that have been attached to the steering column in vehicles actually resembles a garage-door opener, but it does not really open doors and instead helps in recording the critical data and helps in saving money.

Snapshot is a device that records and transmits all the necessary data, such as the miles driven, speed at which the vehicle was driven, the time of day it was driven, as well as the braking behavior. This data is then sent to the concerned insurance company such as Progressive. Based on the data that is recorded over a six-month period the discounts are offered to the motorists.

Brandon, from Huber Heights has stated that her safe driving habits have ensured her discounts and insuring her van will cost her $100 less annually.