back icon

When using insurance telematics products, what's the catch?

A discussion of the consequences of how we use your personal data.

Published on : 
September 15, 2021
Updated on : 
September 21, 2021

While most drivers we talk to are enthusiastic about telematics insurance or behavior-based insurance products, we often encounter significant concerns about personal data privacy. When you drill down into what these privacy concerns are, it is possible to summarize them into three general questions:

  1. What data are you collecting, and who are you sharing it with?
  2. How are you using this data?
  3. How are you using this data against me, or what’s the catch?

Nothing is surprising here, and in our view, these are legitimate privacy concerns. As people become more aware of how companies are using  their data to make a buck, some are concerned about the consequences of how that data is used. While the first two questions can easily be addressed as part of a standard privacy policy (e.g. data is anonymized, never shared with 3rd parties), a discussion about the consequences of the use of personal data needs to happen out in the open.

So, this means that we have to answer the third question raised by drivers above. That is, how is the data that Allegory collects from a driver going to be used against them? Or simply put, what’s the catch?

So, what's the catch?

The obvious answer is that Allegory never shares your personal data with any third party unless you give us specific permission, as stated in our Privacy Policy. Aside from your account data, such as your name or email address, we collect GPS coordinates and data from your mobile phone’s sensors, but only when the app detects that you’re in a moving car or you start a trip manually. After you complete your trip, we send this data to our servers, analyze it, anonymize it, and then calculate your driving score. This includes risky events that were detected during the trip. All of this information is then accessible to you in the app on the Trips page.

However, what if your driving score determines that you should be potentially charged more for insurance or that you’re not eligible for certain rewards? This is a fair question, but we’re willing to let you in on a secret: Allegory’s ultimate goal as a business is to help incentivize people to become safer drivers, so that they can then become the most profitable auto insurance customers. Time and again, the research has proven that even though they pay the lowest premiums, the safest drivers are the best insurance customers.

Also, in order to use the mobile application, you need to be able to drive, so you already need to have insurance. This means that it’s not possible for us to affect your current insurance. When we do offer telematics insurance or a usage-based insurance policy, and you see a policy that doesn’t make sense to you, you can simply keep your existing policy. However, you can always improve your driving score and prevent accidents with the Allegory app, unlocking better offers for insurance, and of course, special offers from our partners without sharing any of your personal information.

At Allegory, we’re committed to making everyone a safer driver, with focused, non-judgmental coaching and personalized incentives to ensure that your hard work is worth the effort.

Articles that may interest you

Allegory Driving Score

August 25, 2021
A fair and unbiased driving score, built by you!
Read More

What is usage based insurance?

June 14, 2021
In this blog post, we define the many terms that get labelled UBI (Usage-Based Insurance).
Read More

Am I a Safe Driver, Good Driver, or Not?

June 22, 2021
A discussion on how technology measures driving behaviour, and how people respond to feedback.
Read More

6 Driving Factors Insurance Companies Use for Insurance Telematics Discount

June 18, 2021
We look at the six most important driving factors that determine how much you can save on your car insurance using an insurance telematics program.
Read More
Download App

Get the Allegory App to start your journey today.

Apple App Store icon with a direct link to the Allegory mobile application.Google Play Store icon with a direct link to the Allegory mobile application.