Your Car May Be Collecting Driving Data For Insurance Companies: Here's How
In the modern world, cars are a necessity for most individuals and families. From commuting to recreation, they're a convenient alternative to public transportation in the eyes of many. Of course, it's also no secret that they come with their share of drawbacks. Repair costs can range from slightly inconvenient to catastrophic. Gas can get pricey and charging stations aren't quite widespread yet. There's the ever-present risk of an accident. Now, there's the matter of data security to keep in mind as well.
Many car owners are completely unaware that their driving data is being collected and sold. For example, as reported by the New York Times, one of the companies responsible for this is the global data broker LexisNexis. It has ties to numerous insurance agencies and collects this data through various avenues. While drivers will sometimes consent to having their driving monitored by their insurance companies to reduce premiums, LexisNexis simply skims data from internet-connected devices inside the car or directly from cars that connect to the Internet.
As a result of LexisNexis' data harvesting and distribution of such information, drivers are unfairly feeling the effects in one of the areas where it hurts the most: their finances.
The impact of driving data collection and how to protect yourself from it
With LexisNexis at their disposal, insurance companies have taken to increasing premiums based on the data of their customers. The New York Times shared that an individual known as Mr. Dahl saw his car insurance rise a staggering 21%, being told that his LexisNexis report was partially to blame. "They're taking information that I didn't realize was going to be shared and screwing with our insurance," he said. Another driver from Palm Beach County, Florida, even had seven insurance companies deny him coverage because of his report. He eventually had to go to a private insurance broker and pay double what he had previously.
So, how can you prevent or put a stop to this shady data collection before it rears its ugly head on your insurance bill? Sadly, there's no surefire way to escape driving data collection, but you can at least have an awareness of it. First and foremost, it's a good idea to reach out to LexisNexis and collect your consumer disclosure report so you can see what kind of data and how much has already been collected. If your car has an internet connection, it's wise to look over the privacy policy. As for your phone, it's best to be mindful of what car manufacturer and insurance provider apps collect and if these companies have worked with the likes of LexisNexis.
Depending on the car you drive, insurance prices can be outrageous. It's important to be aware of your data, where it's going, and how it can impact you in this day and age, whether you're online at home or in the driver's seat.