Legal Expert: Paul E. Traynor
Drivers Are Open to Adopting Telematics for Savings, so Why Are so Few Opting In?
Telematics can help cut costs and make roads safer, but are drivers ready to trust insurers with their data?
MoneyGeek consulted a legal expert to learn more about two of consumers’ most significant fears related to telematics — namely, their data being used as evidence in litigation or exposed during a data breach.
- What is the most common use of telematics in litigation?
- What type of regulation could help protect driver privacy in telematics?
What is the most common use of telematics in litigation?
The general trend in the use of telematics is seeing an increasing number of cyber security breaches from outside illicit sources in which personal protected information and/or personal health information is compromised. The business community is seeing a rise in legal liability for the companies that are the victims of these breaches. This has caused a rising demand for cyber-liability insurance, which continues to see increasing rates because of the potential risks companies are exposed to and their lack of security protocols to protect the information in their possession.
What type of regulation could help protect driver privacy in telematics?
With respect to driver privacy and the use by auto insurers of telematics to track an individual’s driving habits, state regulation will most likely need to increase in order to protect driver privacy and what auto insurers can and cannot do with respect to the information they collect and with whom they share that information.
MoneyGeek surveyed a nationally representative sample of 1,194 drivers who own or lease a vehicle to explore their sentiment towards safe driver programs; these programs track driver data, including mileage, time of day driving, duration, speed, phone usage and location.
Of our survey respondents, 10% were Generation Z, 31% were millennials, 32% were Generation X and 26% were baby boomers. This survey sample was balanced to be representative of gender, age and income demographics of the United States.
If you have any questions about our findings or methodology, please reach out to Melody Kasulis via email at email@example.com.