The Hidden Price Of A Safe Driver Discount
Our attorney Ken Denos recently joined Fox 13 to talk about something most drivers never think to question: what happens to their information after they agree to a “safe driver” discount. The conversation moved past the usual accident advice and into a topic that affects almost everyone with a smartphone or a newer vehicle, whether they’ve filed a claim or not.
Acadia Law Group PC has represented Utah drivers in situations where insurance data played a bigger role in a claim decision than most people realize.
The App Isn’t Free, You’re Paying With Data
The pitch is familiar. Download an app, plug in a small device, and earn a discount for being a good driver. Denos pointed out that this framing hides who actually sets the terms. “‘Safe driving’ isn’t your call to make. The insurance company sets the standard, not you.” Once a driver opts in, the company gains access to ongoing driving trends, not just a single trip, and gets to decide later whether that pattern counts as safe.
Denos was direct about where that leads. “Once you let that thing in, it doesn’t just watch your driving. It can be used to raise your rate, deny your claim, or get sold off to a company you’ve never even heard of.”
Some Cars Are Already Doing This Without an App
One point Denos raised surprised even people who consider themselves cautious about privacy. Newer vehicles can collect this same data directly, with no app and no dongle required. He referenced the Federal Trade Commission’s finalized action against General Motors and OnStar, which found that the Smart Driver feature collected precise location and driving behavior data and passed it to consumer reporting agencies, who then shared it with insurance companies. Many of the affected drivers never realized they had been enrolled.
Denos was careful to note that GM isn’t unique. “Connected car technology like this has been standard across most manufacturers for years now, so if you’re driving something built in roughly the last five years, there’s a real chance your car has been quietly logging your driving habits and handing them off to someone else.”
Third Parties You Never Meant to Invite
The segment also touched on apps that have nothing to do with insurance at all, like fuel rewards or family tracking apps, that quietly share location and driving data with brokers who resell it. Denos described the arrangement bluntly. “You didn’t invite your insurer in. You invited a stranger in, and the stranger sold your info to your insurer without you ever being in the room.”
If your premium has increased without a clear explanation, a Salt Lake City personal injury lawyer can help you find out whether outside data played a role and what you’re entitled to ask your insurer about it.
What Drivers Can Do
Denos offered a few practical steps for anyone concerned about what’s already on their phone or in their car:
- Review app permissions and disable location or driving-data sharing where possible
- Ask your insurance agent in writing what data is collected and who it’s shared with
- Request the source of any outside data used to justify a premium increase
- Avoid signing up for usage-based discounts without reading the actual terms
As Denos summarized it, “a safe-driver discount sounds like a reward. Too often it’s a data collection agreement wearing a discount’s clothing.”
If you’re not sure what your insurer already knows about your driving, or a claim decision seems to be relying on information you never agreed to share, a Salt Lake City personal injury lawyer at our firm can review your policy and push back on how that data is being used before you accept an insurer’s explanation at face value.