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The truth shall set you free, but first it's going to piss you off
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Monday, August 21, 2006
Posted
8/21/2006 05:16:00 PM
by Douglas
"Houston was the frontier for usage-based insurance in this country," said company spokeswoman Leslie Kolleda.Right off the bat, who wants to their movements tracked and recorded? Even if you think you're saving money, does anyone really want their insurance company to know how many times they go to the mall or the adult bookstore? But it gets worse. Now Progressive is offering a streamlined version, but only in Minnesota. The program, launched in 2004, uses a matchbox-size device that plugs into the On-Board Diagnostic system that is under the dashboard of cars made since 1996. That's where the mechanic plugs the data analyzer when your "check engine" light comes on. Unlike the GPS-based version, this one doesn't track where the vehicle has gone, but rather the time that each trip began and ended, miles driven, speed at 10-second intervals, and the number of sudden starts and stops.So it uses already existing "spyware" on my vehicle to tell my insurance company about my driving patterns? All for a discount, eh? At first glance this is a good idea. If insurers issue you a policy based on what their pointy headed actuaries determine your "risk", then sure, I'm entitled to a discount if my driving habits are substantially less than those risks. But insurance companies aren't in business of providing discounts, so what in the world could they be "buying" from you with this discount? The customer is free to submit the data or not, without penalty, but a 5 percent discount is guaranteed just for sending it in. The discounts can range up to 25 percent, based on miles driven, time of day that the driving occurred (the wee hours are considered high-risk), the amount of driving in excess of 75 mph and the frequency of abrupt starts and stops.They're buying data. They want to know how you drive. The question is if I give them this data and they find out I drive 70 MPH everywhere I go, are they still going to give me the 5% discount? Of course not, or they're damn fools. Look, the new technology makes it much easier for private companies to data-mine the shit out of us and buy/sell/trade that information to whomever wants it for however much they're willing to pay for it. Americans are so obsessed with identity theft, yet they're perfectly willing to hand over their identity to save 5% on their insurance. Don't make it easier for them! Don't let big brother ride shotgun for a mere 5%.
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