Tag: privcay

By on November 19, 2020

General Motors is making moves to offer insurance plans under its data-focused OnStar connected services, which is convenient since the feature comes equipped on all new models the company sells inside North America. Participating customers will be required to allow the automaker to track their driving behavior in real-time. As a perk for handing over their right to privacy, GM will offer discounts to motorists that never exceed the speed limit or accidentally roll through a stop sign.

It’s part of a usage-based insurance trend that’s becoming increasingly common within the industry. It started years ago with customers agreeing to have insurers install tracking devices in their vehicles in exchange for lower rates — assuming they displayed what the agency deemed safe driving practices throughout the duration. But, now that cars are becoming connected to the internet, this can be done automatically with on-board technologies. Consumer advocacy groups are growing worried that insurers will eventually make vehicle tracking mandatory and use it as an excuse to issue predatory fees.

Frankly, so are we.

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