Per-mile insurance plans, where insurance rates are calculated by driving habits, can invade a driver’s privacy. In order to save money on car insurance, drivers are giving up a lot of data and private information to their insurance companies.
A study conducted by researchers at the University of Denver, Colorado, found that speed, time of travel, number of miles driven, braking and acceleration data provide a very detailed picture of a person’s movement. All this information collected is used to charge lower insurance rates for safe and low-mileage drivers.
The study found that insurance providers say location data is not collected, creating a sense of privacy, which is not the case. With pay-as-you-drive plans, insurance companies usually require drivers to plug in a small telematics device into the car’s onboard diagnostic port. The device monitors the driver’s driving behavior and records data like speed, cornering and braking patterns over a specified time period.
Unlike its per-mile insurance competitors, Mile Auto does not install tracking devices on insured cars. Mile Auto offers per-mile coverage without invading your privacy.
Instead of installing tracking devices, Mile Auto sends a text to policyholders asking for the odometer reading. The driver can reply with a picture of the odometer reading. This way, drivers with low-miles can enjoy lower car insurance rates without having to sacrifice their privacy.