Privacy laws in the state of California are the latest focus of a controversy surrounding auto insurance companies rewarding their customers for good driving.
Many insurance providers now allow users to install tracking devices in their car that may grant them access to better rates on their policies, but California's Department of Insurance is opposed to the measures, according to a report from
Reuters. While Progressive, the industry leader in this type of tracking, says that 70 percent of its customers would qualify for lower rates based on their driving habits, the state says that's not enough to sway its current stance.
"While there are occasional discussions with certain insurers and vendors, the Department has no imminent plans to initiate usage-based rating factors," said Pat McConahay, a spokeswoman for the California Department of Insurance, told the news service.
Privacy experts say these services may have negative implications for drivers, such as being used to retroactively assess speeding tickets or increase insurance premiums.
Eduard Goodman, the chief privacy officer for
Identity Theft 911, writes on his blog about the issues consumers face in keeping their personal information protected.
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