“Pay As You Drive” Automobile Insurance: Recommendations for Guarding Personal Privacy

Along with the potential good to come from reduced driving through PAYD insurance, there is a real risk that insurers will base attractive premiums on consumers’ willingness to accept onboard devices that record much more than miles traveled. Depending on the technology used, devices installed on personal automobiles may track speed, location, duration of a trip, acceleration and deceleration, time of day the trip was made, the identity of the driver, use of mobile phones and more. Once installed, a device originally set to track one driving element may be altered to add additional functions.

“Pay As You Drive” Automobile Insurance: The Need to Guard Personal Privacy

Privacy Rights Clearinghouse and PrivacyActivism agree that a pay-drive plan that offers financial incentives for those who drive infrequently or who may choose to carpool or take public transportation has enormous potential for reducing traffic and protecting the environment. However, we respectfully disagree with the Commissioner’s statements in his August 3, 2009, press release that the regulations protect the privacy of California drivers.

Also, regrettably, neither the Department’s press release nor the amended regulations explain how the privacy of California drivers is protected.

“Pay As You Drive” Automobile Insurance: Comments on the Need to Guard Personal Privacy

On June 18, 2008, PRC and Privacy Activism responded to a call for comments when DOI first considered adopting a pay-drive program.

Our June 2008 comments discuss the serious threats to privacy inherent in a pay-drive program that depends on data gathered by onboard technology. Our concerns extended not only to the kinds of data collected by installed devices but also to the potential and unforeseen secondary uses of collected data. With few exceptions, our concerns about the threats to privacy and potential secondary uses of data remain essentially unchanged from those expressed in June 2008.

The Emperor's New Clothes: Privacy on the Internet in 1999

The most irrefutable finding of the May 1999 Internet Privacy Policy Survey (hereinafter called the Survey) is that collection of personally identifiable information is the norm on commercial web sites. The Survey found that 93% of the sites in the sample (n=364) collect at least one type of personal information (such as name, email address, postal address). Only 7% of the sites collect no information.(2)

Privacy Expectations in a High Tech World

Now, we're experiencing the explosion of commerce on the Internet. Web sites are able to capture data from their visitors, and to merge that data with other information. With the exception of the Children's Online Privacy Protection Act and a smattering of state laws regulating spam, or unsolicited electronic mail, there is little regulation of data collection on the Net.

So, what are consumers' experiences on the Net concerning their privacy? I will list several themes that I've observed in talking to consumers and in following news stories about online privacy abuses in recent months.

A Review of the Fair Information Principles: The Foundation of Privacy Public Policy

Nearly 25 years ago in 1973, a task force was formed at the U.S. Dept of Health Education and Welfare (HEW) to look at the impact of computerization on medical records privacy. The members wanted to develop policies that would allow the benefits of computerization to go forward, but at the same time provide safeguards for personal privacy.

Federal Reserve Board "Credit Header" Comments

Recent amendments to the Fair Credit Reporting Act, signed into law on September 30, 1996, directed the Board of Governors of the Federal Reserve Board to conduct a study on the availability of sensitive identification information about consumers and the possible use of such information for financial fraud.

The comments provided herein by the Privacy Rights Clearinghouse focus on "credit header" information as well as the widespread availability of Social Security numbers.

Financial Privacy: The Shortcomings of the Federal Financial Services Modernization Act

The new federal law, the Financial Services Modernization Act, enables three industries to affiliate under one corporate roof -- banking, insurance, and securities. The Act requires that banks and financial services provide an "opt-out" for customers to restrict the sale of personal information to third parties. But it gives no ability for customers to restrict the sharing of data between and among affiliates.

2001: The GLB Odyssey -- We're Not There Yet: How Consumers Rial Privacy Notices and Recommendations for Improving Them

Given the complexity and limitations of GLB's privacy provisions, the Privacy Rights Clearinghouse (PRC) undertook a major project to educate consumers about the new law and their right to prevent information sharing. The PRC launched this project with the premise that such an educational program would fill the gap left by questions unanswered from consumers' review of the notices required by GLB. Instead, what we found was that the majority of consumers who contacted us had heard or read media stories about the GLB notices and realized they had ignored the notices that their financial institutions had mailed to them in previous months. Few of the consumers who contacted us had actually noticed or read the notices. They were worried that they had missed the opportunity to prevent the sharing of their customer data with other companies.


Showing 101-110 of 135 results
Subscribe to Public Policy