Allstate Corp. is in talks with state insurance regulators to spur an industry-wide transition to the use of telematics to set car insurance rates.
Telematics allows insurers to track driver behavior using smartphone apps or devices embedded in their vehicles.
The devices monitor hard braking and speeding, hours of travel, location, total miles driven, and, in some cases, distracted driving.
The data may be analyzed to tailor rates to individual drivers.
However, the technology has raised concerns about privacy, redlining, and whether the telematics data is owned by the driver or the insurer.
The National Association of Mutual Insurance Companies estimates 8 million U.S. drivers have telematics-connected cars, which amounts to fewer than 4% of the more than 210 million personal-auto policyholders nationwide.
From The Wall Street Journal
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