Is privacy loss worth 8% car insurance discount?

Source: Toronto Star

For the past two months a small device in my car, the size of a credit card, has been tracking my every movement. It knows how far I drive every day, the time of day I’m driving, how quickly I accelerate to get on to the highway and which highway that was. The wireless GPS monitor goes with the Desjardins Insurance Ajusto program which was launched in Ontario last May.

I’ve been testing the device to see how much I might save by exchanging some privacy in return for a discount based on my driving habits. So far, I’m looking at about $150 a year and I’m not sure whether the tradeoff is worth it.

... Ajusto is the first of a new tier of car insurance products coming your way. Companies are using wireless technology to monitor how you drive and sell you products based on that. In exchange for personal information, you’ll get a better deal.

... Fred Carter, a senior technology advisor to Privacy Commissioner Ann Cavoukian, says the biggest danger is ‘function creep,’ where insurers collect all kinds of secondary information and then use it without asking permission or sell it to third parties. These might include: How often you travel out of province or to the U.S. When exactly you’re prone to accelerating quickly. How often you stop at a McDonalds versus Wendy’s, how long you stay at the grocery store and which ones you visit. Did the kids spent the weekend in Montreal when they borrowed the car or go to Ottawa?

Read more: http://www.thestar.com/business/personal_finance/insurance/2014/06/15/is_privacy_loss_worth_8_car_insurance_saving_from_ajusto.html