Car insurance companies are always trying to find some way to better monitor your driving style and habits to help adjust their premiums accordingly. In fact, yours truly fell for the Progressive scam of plugging a small transmitter into the data port on my Mazdaspeed MX-5 with the promise that I could “save up to 30 percent.” Well, this little gadget sensed every time I tapped the brakes a little too hard or pushed my little turbocharged roadster into a corner just a little harder than usual, then it would beep and upload this information to the company.
Well, after noticing what this gizmo was up to, I quickly unplugged it and overnighted it to Progressive with a thanks-but-no-thanks letter. Well, now more insurance companies are getting into the tracking game with even more technology. In fact, State Farm has taken it a little further by installing an app on your Android 4.0 (or higher) smartphone. According to State Farm this app will collect “basic information about your driving,” but the insurance giant doesn’t offer a bit of info about what it will use this data for.
So, why would you allow your insurance company to track how, when and where you drive? Because they grease your palm, of course; State Farm is offering up a $50 gift card to the first 5,000 volunteers to give up their driving privacy and test the system. In fact, you don’t even have to be a State Farm customer to do this test and get the $50.
We say stay away from this deal and the insurance tracking devices altogether, regardless of how much they choose to offer you in return. Chances are that this information could potentially jack up your car insurance just because you park in a less-than-ideal area semi-frequently or brake a little harder than others. Plus, having your insurance company knowing what you’re up to at any given time is pretty dang scary.
What’s next, health insurance companies strapping devices on us to monitor our food intake and exercise?