Most people download insurance apps primarily for savings, whether through safe driving initiatives or health incentives. The deal is quite straightforward: provide some data to receive discounts. But what kind of data are you actually sharing?
Recently, I received an email from Jean, and I think it’s a question a lot of folks are pondering.
“I’m using an app called Travels to get lower insurance rates, but I’m a bit worried. When I use it, it seems to have access to my health info and other personal details. I’m not sure if there’s a way to limit what it tracks. Is it worth getting a 10% discount initially and another 10% the following year?”
— Jean S.
Jean, you’re not alone in your concerns. Many insurance providers now offer discounts if you install an app and agree to share specific information. This could include details about your driving habits, travel locations, and even some health and fitness data if the app connects to platforms like Apple Health. It’s essential to note that participation in these programs is usually optional, and sharing your data is part of the arrangement.
The good news is there’s often a way to limit what these apps access. The larger issue, I suppose, is whether the discount is worth sacrificing your privacy for it.
Understanding How Insurance Apps Track Data
Telematics programs let insurance companies monitor driving behavior through apps and connected vehicles. Such programs keep tabs on aspects like speed, braking habits, and times you’re on the road. Earlier, we discussed how these apps collect and utilize personal information, often without users fully realizing what they’re giving up. The situation is complex: insurers are increasingly gathering data about your driving and lifestyle. So, the question remains—how much personal information are you willing to trade for a discount?
What Information Can These Apps Access?
Programs differ, but most insurance apps will collect various types of data, such as:
- Position
- Speed
- Braking and acceleration patterns
- Driving duration
- Movement patterns detected by your smartphone
This data helps to create a driving score, and safer drivers often receive discounts come renewal time. Some apps might also ask for access to other data on your phone, like fitness and motion data.
On the health front, some programs link to health platforms, allowing access to information such as:
- Step count or activity level
- Training information
- Selected health indicators from apps like Apple Health
It’s crucial to understand that apps typically can’t access this data unless you allow it during setup. Yet many users tend to click through permissions, unaware of what they are agreeing to share.
Privacy Concerns with Insurance Tracking
Location data can divulge a surprising amount about your life—your home, workplace, and daily travel habits. Likewise, health and fitness data can provide deeper insights into your routines. Although insurance companies aren’t surveying everything on your phone, giving extensive permissions lets them gather significant details about your daily habits.
Therefore, it’s wise to scrutinize app permissions closely.
Are Insurance Tracking Apps a Good Option?
Generally, yes. Insurance companies promote these programs as optional ways to earn discounts. By signing up, you’re consenting to share some data, which helps them assess your risk. If your data indicates safe driving or an active lifestyle, you might receive discounts during renewal. However, if you’re uncomfortable with tracking, opting out is usually possible, although that may mean losing those benefits.
How to Limit Access for Insurance Apps
If you’re concerned about privacy, you can adjust the permissions on your phone, whether using an iPhone or Android device. A good practice is to scrutinize all the permissions an app asks for and only grant what is necessary.
Limit Location Tracking
On iPhone:
- Go to settings
- Tap Privacy and security
- Select Location services
Find the insurance app and modify its access. You can often set it so that the app only has access when you’re using it.
On Android:
- Go to settings
- Tap location
- Select App permissions
Or in some cases:
- Go to settings
- Tap security and privacy
- Select more
- Find permission manager
- Choose location
Limit options like allow only when using the app or not allow to reduce background tracking.
Check Health Data Access
When an insurance app connects to Apple Health or Google Health Connect, you can manage that separately.
On iPhone:
- Go to settings
- Scroll down and select apps
- Tap health
- Select data access and devices
Here, you can choose an insurance app to see what it can access and turn off categories of health data if necessary.
On Android:
- Go to settings
- Click privacy or security and privacy
- Look for other privacy settings
- Tap health connect
- Select app permissions
This will show which apps can read or modify your health information, and you can revoke these permissions if necessary.
Review Requests for Other Permissions
Besides checking the permissions in your phone’s settings, review any access requested for:
- camera
- motion and fitness
- contacts
Only grant permissions essential for the app’s functionality. This follows a basic security principle called least privilege: give the app only the permissions it requires to operate.
Are the Discounts Worth It?
Returning to Jean’s question, is the 10% discount justifiable? For some, definitely. The savings can add up if you’re comfortable sharing your driving information and understand how the program functions. Others, however, might feel it’s too much of an invasion of privacy. Ultimately, it’s about knowing what data you’re sharing and evaluating if the benefits outweigh your concerns. Sure, a discount sounds appealing, but privacy has its own worth.
Final Thoughts
Insurance apps mark a significant shift in how companies evaluate risk. They no longer rely solely on traditional metrics like age or past claims but can now gauge behavior through devices people carry daily. This approach rewards safe drivers and healthier lifestyles, but it also raises new privacy challenges many users may not have anticipated when downloading the app. Jean’s instincts about the app’s access are spot on. Before jumping on the discount, take a moment to review your permissions and decide how much tracking you’re comfortable with. Our mobile devices hold extensive personal information, and it’s crucial to keep it managed.
