Car insurance is necessary, but unfortunately, it is also not cheap. Drivers often look for discounts that can help them save money. One way to save money is through your auto insurance carrier’s good driver discount program. Many large insurance companies offer similar programs to their policyholders.
If you join a good driver program, you may enjoy the savings, but do you also know about the risks? These user-based insurance (UBI) programs give your insurer the ability to track your driving habits. What happens to this data your insurance company collects about your driving habits? Can the data collected about you be used to deny a claim?
At High Stakes Injury Law, we are ready to protect your legal rights and help you recover maximum compensation after a collision. If you have been injured because of another driver’s negligence, contact our firm to set up a meeting with one of our qualified attorneys. This initial case review is completely free.
What Are Insurance Tracking Devices?
Insurance tracking devices, also called telematics or event data recorders, work much like the black box in a plane. Telematics devices come preinstalled in many newer vehicles. However, there are two other types of insurance tracking devices insurers often use to track a driver’s data.
The first is a dongle, which is simply a physical device drivers can install or plug into their vehicle. Drivers can also download a telematics app through their smartphone. The type of insurance tracking device used varies based on the vehicle you drive, your insurer and the program you select.
How Are Insurance Tracking Devices Used?
Insurance tracking devices collect and analyze data about your driving habits. For instance, telematics devices can determine, on average, how often you take corners too fast, brake hard at intersections or exceed posted speed limits. This data can help your insurance carrier determine whether the way you typically operate your vehicle makes you a safe driver.
What Data is Collected on an Insurance Tracking Device?
The data collected by car insurance companies can vary from one carrier to another. However, in general, insurance tracking devices may collect some or all of the following:
- How often you drive your vehicle, how long, and where
- Whether you make a habit of hard braking
- Date and time you were driving
- How often you follow or ignore speed limits
- Fast or hard-cornering (taking sharp turns while going too fast)
- Acceleration data (such as frequent pedal-to-the-floor hard accelerations)
- Airbag deployment data
- Whether you often use your cellphone while driving
- Seatbelt usage
- And more
Once your insurer has this data about you, they can apply it to a mapping program. This type of program looks at your driving habits in context of things like road signs and speed limits and tells the insurer whether you may be a safe driver. For instance, do you normally ignore red lights or rush through a yellow to avoid stopping at a red light?
How Do Insurance Companies Use the Data They Collect About You?
There are a few ways insurance companies may use insurance tracking device data. For instance, they may:
- Provide your data to affiliate marketers: Insurance tracking devices require your location to be enabled. This means data collected about you and your driving could be shared with a third party.
- Assess your eligibility to continue participating in the good driver program: After analyzing your data, your insurer could oust you from the program and increase your insurance premiums.
- Use raw data from the device to learn more about a traffic accident: Your insurer can use this data to learn more about a crash and what happened prior to impact.
Could Insurers Use Insurance Tracking Device Data to Deny My Claim?
Insurance tracking devices already provide data for evidence in both civil and criminal cases. So, yes, this data could be used to enable your insurer to pay you less than what your claim is worth.
The liable insurance company could subpoena the data collected for both you and the other driver. Depending on what the insurance company finds when analyzing this data, it could damage your ability to recover compensation.
Nevada follows a comparative negligence system, so even if you are found partially at fault, you may still be able to recover some compensation. However, it could be much less than the full value of your claim. In some cases, the insurance company may find a reason to fully deny your claim.
The fact is, there are a lot of ways this data could be used against you in a claim. Having a knowledgeable and experienced attorney on your side may greatly benefit the outcome of your case.
What is a Good Takeaway for Drivers?
Many drivers may accept their data is being tracked for the advantage of saving money on their premiums. However, keeping in mind how insurance companies may use this data, potentially against you, could also help you improve your own driving skills.
Our Firm Can Help You to Understand Your Legal Rights
When you need results, our firm is ready to help. Our dedicated Las Vegas-based auto accident attorneys understand how overwhelming it is to pursue a legal claim. We are prepared to fight for your interests throughout the legal process. We want you to be able to focus on your health and your family, knowing that your claim is in good hands.
If you suffered injuries in a collision caused by another driver, you may be eligible to seek compensation for your medical costs and other losses. Contact our firm today to get started and learn more about your legal options. There is no cost or obligation for this initial meeting.