Premiums Affected as Internet-Connected Cars Share Data with Insurers

All kinds of popular features, such as in-car apps, remote functions, and even Wi-Fi hot spots, are available on most new vehicles that offer internet services. In addition to being a goldmine of data for automakers, these “connected” cars can also serve as a goldmine for insurance companies as well. An article published in the New York Times this week discussed the extent to which tracking driver information can affect insurance rates, as well as how it may affect driver insurance rates. 

The insurance industry has in recent years provided incentives to consumers who install dongles in their cars or download smartphone apps that allow them to monitor a variety of things, including how much they drive, how fast they turn corners, how hard they hit the brakes, and whether or not they speed when driving. 

A patent application by Ford Motor describes how “drivers are traditionally reluctant to participate in such programs,” but instead, car companies are collecting information directly from internet-connected vehicles for use by insurance companies. This is the opposite of what’s happening now. As far as tracking users’ driving data regarding car insurance adjustments is concerned, it is not a new concept at all. 

If users prove that they are good drivers, they can often reduce their insurance premiums, normally by letting their insurance company track users’ vehicle data such as trips taken, speeds,

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