Insurance Company Telematics Trade Perks for Privacy Wired News
When State Farm Insurance announced its telematics-based roadside assistance program, everyone said OnStar had gained a new competitor. What didn’t get as much attention, however, is that the insurance company also opened an electronic window into your driving habits.
The system, called In-Drive, is two small boxes — one that clips onto your visor, another that plugs into your car’s OBD II diagnostic port — that can summon a tow truck, alert the police and even locate a stolen vehicle or a teen who has missed curfew. It’s all very helpful, and quite innocuous. But In-Drive also lets drivers opt in to Drive Safe and Save, State Farm’s usage-based insurance program that calculates drivers’ premiums based on their recorded driving habits.
The insurer is offering discounts on insurance premiums of as much as 50 percent, in addition to roadside assistance, in exchange for tracking its customers. State Farm says the program, which costs motorists between $5 and $15 monthly, is designed to provide conveniences like emergency assistance while encouraging — and rewarding — safe driving habits.
