Why Your Car Insurance Will Go Up, DRIVING DATA is Being SOLD

Just to scare you a little bit, but this is interesting and I'm curious what you think in terms of

How you think this would happen, what do you think would happen here in a free market

It turns out that Your auto company right right now that every car that you drive has a chip in it

That chip is monitoring your driving behavior It knows what speed you drive it knows when you brake fast it knows how you take corners

It's monitoring your driving it monitors the engine it monitors every aspect of the car

How far you drive? and that information is provided to the auto companies

That information is provided to General Motors or Ford or Toyota or whatever

and Those auto companies Then sell that data to a company called Lexus Nexus

Lexus Nexus is a data aggregator global data broker. It used to be a legal search database

But the Internet has made that irrelevant so they've shifted to being this global data broker

And all this data goes to their risk solution division and then Lexus Nexus sells this data

to the insurance companies Auto insurance companies and Then auto insurance companies use this data to assess how risky of a driver you are and

Based on that they will adjust your premiums So if you notice that your premiums are going up a lot

It could be because you've been driving fast you've been Stomping on the brakes really really hard

You've been accelerating really really fast And They have accurate data to suggest all this

now There's something really rotten about this something right about it and something very rotten about it

What's right about it is? Yeah insurance companies are really interested in this data

Insurance companies. I mean, it's great if they can really price insurance based on the real risk that you're driving poses

It will actually make insurance ultimately in the long run for most of us particularly for safe drivers more affordable

So This is

This is rational and logical from the insurance perspective, it's actually good for all of us in the sense that

Insurance premiums will actually reflect risk much better than they ever have

but on the other hand, I Don't remember giving permission to use my driving data for this purpose. I

Don't remember giving permission for the auto company to accumulate this data and then to sell it

There's something There's something really wrong There's something really wrong with This assumption the data can be bought and sold transferred taken

And that the individual whose data it refers to has no say in the matter

Like you maybe we signed when we bought the car some form

It just allows the auto company to accumulate all the data once on us, but something's wrong with it

Generally contracts today suck and are non-objective and you can tell they're non-objective by the fact that they're so long and so complicated

Nobody reads them Contracts particularly consumer contracts should be written in plain English should be short and simple

But we have a legal system that is perverted and distorted the whole area of contract law and of course is one of the consequence of this is that privacy is completely eroded distorted perverted and

They think they can just take them take out data and do whatever they want to do with it

There's something very perverse about that. There's something very very wrong about that

So if the other company asked me whether I was willing to have my data sent to the auto insurance company, I would say yes

But then you've got a moral hazard problem. That is good drivers would send all their

Auto inch auto information to the insurance company, but then what would happen which is interesting, right

The insurance company would then take that into account And if you refuse to share the data with them

They would raise your premiums because they would rationally assume that your reason you didn't want to share your data with them is

Because you were a risky driver and you don't want your premiums to go up. So they would go up anyway

So actually making this voluntary and making and allowing individuals to decide whether to share the data or not

actually Allowing individuals to own their own data and then contract it out sell it out

Instead of what is probably going to happen is some kind of legislation that says one way or the other

Would actually create a healthier better use of data and a healthier better kind of

Relationship between insurers and and for all you know, basically for for how all of this actually works

And ultimately that means lower premiums better service the whole shebang