Slammed on the brakes to save a life? Insurance just penalized you
To a consumer dealing with inflation, the pitch sounds great: download an app, let your insurer track your driving, and watch your premium drop. Major carriers present usage-based insurance as a fair system that lets safe drivers escape expensive, generalized risk pools. Yet a different reality is emerging for drivers using State Farm’s Drive Safe & Save, Progressive’s Snapshot, or Allstate’s Drivewise. These programs often function as aggressive tools for corporate surveillance.
TL;DR
- Usage-based insurance programs are presented as a fair system for safe drivers to lower premiums.
- These programs, like those from State Farm, Progressive, and Allstate, can function as tools for corporate surveillance.
- Marketing for these programs can be deceptive, with some carriers openly stating rates may increase for poor driving.
- Even programs that don't directly increase rates may penalize drivers by removing introductory discounts, effectively raising costs.