Communications of the ACM
Allstate Wants to Track Your Driving to Determine Your Car Insurance Rate
With telematics, insurers monitor policyholders driving behaviors either through smartphone applications or devices embedded in their vehicles. Insurers slice the tracking data to tailor individual rates.
Credit: fleet.randmcnally.com
Allstate Corp. is in talks with state insurance regulators to spur an industry-wide transition to the use of telematics to set car insurance rates.
Telematics allows insurers to track driver behavior using smartphone apps or devices embedded in their vehicles.
The devices monitor hard braking and speeding, hours of travel, location, total miles driven, and, in some cases, distracted driving.
The data may be analyzed to tailor rates to individual drivers.
However, the technology has raised concerns about privacy, redlining, and whether the telematics data is owned by the driver or the insurer.
The National Association of Mutual Insurance Companies estimates 8 million U.S. drivers have telematics-connected cars, which amounts to fewer than 4% of the more than 210 million personal-auto policyholders nationwide.
From The Wall Street Journal
View Full Article - May Require Paid Subscription
Abstracts Copyright © 2021 SmithBucklin, Washington, DC, USA
No entries found