29 Nov Can my insurance company track me by my phone?
It doesn’t get any crazier than this. Car insurance companies are able to track your driving through your cell phone. An article at Wired, by David R. Martin, lays out the details on what are called “telematics”, or usage-based insurance (UBI) policies. Many of you were probably already aware that your phones act as personal GPS trackers for anyone savvy enough to determine where you are at. Some insurance companies has an app you can download that can help them assess your riskiness more accurately. Perhaps you are thinking this would be a good thing. You feel like you drive pretty safe and slow and that your rate is too high. You don’t like that your price is pegged to the same rate as a group of people of which you are an exception. You should think hard about this though. Those times where you are rushing to work will be tracked as well as that stop light you ran. Also, this lets the car insurance company know where your car spends its time. Many people attempt to list a different zip code for their garaging address in hopes of achieving a cheaper rate. This app will be able to discern the whereabouts of your car accurately.
The article also outlines what is known as the Hawthorne Effect whereby people improve their behavior when they are being monitored. Thus some insurance companies might receive a false rating by the temporarily improved driving of its insured. Fascinating to think about. You can read the article here: Read it here
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