Auto Insurance Companies That Don’t Monitor Your Driving
Car insurance companies that don't monitor your driving do not exist. Data collection through GPS and other location-monitoring software is what insurance companies use to calculate your auto insurance premium. Because there are many risks of car insurance tracking devices, insurance companies allow their clients to opt in or out of this service. If you are a high-risk driver, you will want to opt out of driving monitoring since it's likely to raise your rates.
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UPDATED: Oct 5, 2021
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- Although usage-based insurance is trending, it’s not required
- Usage-based insurance tracks data on how many miles you drive or how safe of a driver you are
- There are some serious risks involved with allowing insurance companies to track your driving using data
Usage-based insurance programs are offered by car insurance companies far and wide, but they are in no way mandatory. There are no auto insurance companies that don’t monitor your driving — but the choice of if they do or not is up to you.
Each insurance company hosts its own version of a usage-based program and uses its own software, devices, and systems to aid this program. Keep reading to decide if you should or should not allow your insurer to collect this data.
You aren’t able to buy auto insurance from companies that don’t monitor your driving, but you can still find affordable auto insurance near you. Enter your ZIP code and get free quotes today.
Which auto insurance companies don’t monitor your driving?
Auto insurance companies that don’t monitor your driving do not exist. All car insurance companies offer a policy that allows them to track your driving using a device that is implanted in your car or through an app that is downloaded to your phone.
This concept is known as usage-based insurance. Either of the devices uses GPS and other location-tracking features to collect data. Things that are tracked include speed, acceleration, braking, vehicle usage, time of day, and distracted driving habits.
Although usage-based insurance is trending, it is not required. You have to opt into the service and add it to your policy for an insurance company to track your driving habits.
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What is usage-based insurance?
Pay-how-you drive, pay-as-you-go, and pay-per-mile are terms that some insurance companies often use in place of usage-based. Usage-based insurance tracks data on how many miles you drive and how safe of a driver you are.
If you don’t drive often, drive during the day, and otherwise obey the rules of the road, you can save money on your car insurance rates with auto insurance companies that monitor your driving.
However, if you are a high-risk driver, you will want to opt out of usage-based insurance as it’s likely to raise your rates. High-risk auto insurance is more expensive than standard insurance.
What are some risks of usage-based insurance?
Each type of usage-based insurance has different specifics which vary depending on which car insurance company tracks your data. There are pros and cons to this form of insurance:
|Good drivers can get cheaper rates due to safe driving habits||If you have a longer commute and are a safe driver, you may not be eligible for lower rates.|
|Usage-based plans partially justifies auto insurers pricing quotes based on non-driving factors||Driving at night could put you at risk for higher-than-expected insurance rates|
|You may be encouraged to use your car less, helping the environment and reducing the likelihood of a collision.|
There are many perks to using usage-based auto insurance, but having an insurance company monitor and collect your driving data could be considered an invasion of privacy, which is why it is not a mandatory portion of your policy.
Car insurance tracking devices also have serious risks when it comes to collisions.
If a collision were to happen and only one party is insured, your insurance company can use the data from your tracking device to prove whether or not you contributed to the crash. If you did, you could be assigned a higher percentage of fault and pay more out of pocket.
Raw data from tracking devices can also help your insurance company make both parties try to split the fault, even if one person is more at fault than the other.
The data from your tracking device can also be shared by your insurance company with the other provider involved in the collision. Auto insurance companies can also share your tracked data with third-party advertisers.
Insurance companies are created to look out for those they insure, but they also must work in the most profitable way for the company. This is why it’s important to protect your personal data.
Since there is no such thing as auto insurance companies that don’t monitor your driving, always be sure to read your policy and opt out of any usage-based auto insurance discounts if you aren’t comfortable with sharing your data.
Find out which policy is best for you here with our free comparison tool below. Enter your ZIP code and get free auto insurance quotes today.