Mobile apps data influence car insurance rates

"Apps Data Influence"

Car insurance companies are now heavily relying on data gathered from customers’ mobile applications to set insurance rates. This approach, which revolves around tracking driving behaviors, moves away from traditional premium-setting methods predominantly based on demographic information. This modern strategy results in better-tailored policies and promotes safer driving.

The use of data-gathering apps, including Life360, MyRadar, and Gas Buddy, has surged. These apps provide valuable data to Arity, a company affiliated with Allstate. From location sharing and real-time weather updates to finding affordable gas prices, these apps collect various essential data about a user’s driving habits.

Arity employs this data to gauge risk and allocate ‘driving scores.’ These scores, divided into ten risk categories, reflect individual driving behaviors. Risky behaviors result in higher scores and consequently higher insurance premiums.

Utilizing mobile app data for car insurance

This approach encourages safer driving habits and potentially lower premium rates.

However, this data collection process has raised privacy issues. Critics argue that users often unknowingly consent to data sharing and are unaware of how their data is being used. The use of ambiguous language in privacy agreements has drawn criticism as well.

Arity boasts of having over 40 million drivers in the U.S., contributing data continuously via mobile apps and connected cars. This massive data helps the company offer insights crucial to several sectors, including insurance and shared mobility. By analyzing real-time and past driving data, Arity helps businesses make informed decisions, improve road safety, and provide a more personalized customer experience.

Despite these advancements, there’s a growing concern about the lack of legislation protecting consumer privacy in the US, particularly following Mars’s revelations that car manufacturers were sharing customer data with insurance firms. This situation calls for a more transparent and protective approach to handling users’ data.

Feeling stuck in self-doubt?

Stop trying to fix yourself and start embracing who you are. Join the free 7-day self-discovery challenge and learn how to transform negative emotions into personal growth.

Join Free Now

Picture of Adam Campbell

Adam Campbell

The IT mastermind with a passion for data and a flair for blogging brilliance. When he's not conquering tech conundrums as an IT manager, you'll find him surfing the waves of big data, decoding the secrets of technology, and serving up witty insights with a side of code humor on his blog.

TRENDING AROUND THE WEB

People who have no close family to rely on usually display these 8 behaviors (without realizing it)

People who have no close family to rely on usually display these 8 behaviors (without realizing it)

Global English Editing

People who become less patient as they get older often exhibit these 9 behaviors (without realizing it)

People who become less patient as they get older often exhibit these 9 behaviors (without realizing it)

Global English Editing

If you’ve been through these experiences, you’re far more resilient and stronger than the average person

If you’ve been through these experiences, you’re far more resilient and stronger than the average person

Personal Branding Blog

If sleeping with the TV on gives you comfort, you probably display these behaviors (according to psychology)

If sleeping with the TV on gives you comfort, you probably display these behaviors (according to psychology)

The Blog Herald

8 things people with high self-worth never explain to others, according to psychology

8 things people with high self-worth never explain to others, according to psychology

Global English Editing

People who stay young looking in their 60s and beyond usually adopt these simple habits

People who stay young looking in their 60s and beyond usually adopt these simple habits

Small Business Bonfire