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In an effort to get a better handle on how much driving, as well as the behavior of motorists behind the wheel, the auto insurance industry is instituting a new "pay-as-you-drive" insurance rate throughout many states, based on a tracking system that monitors factors such as when and how far a person drives each day, how many sudden stops they make, and many other factors. Insurers contend that basing rates on how drivers use their cars can help to cut rates, but privacy advocates say the system borders on a “Big Brother-type mentality.” One or two major auto insurance companies have already adopted this, or a similar program, reports the Los Angeles Times. Many proponents of the new system consider rates based on such an in-car monitoring system are more fair because safer drivers and people who drive less have subsidized the costs for those who drive more or more recklessly. Insurers also predict that the system encourages safer driving or reduced driving, which could lead to fewer crashes and insurance claims. But some consumer advocates are concerned about privacy invasion, especially the inclusion of a GPS system to track a vehicle's location. Companies offering the “pay –as-you-drive” insurance plan say that they are not using such data to calculate premiums but rather to offer roadside assistance and other services under their insurance plan. The tracking devices tie into a car's diagnostic computer, which rules out vehicles made before 1996 because they do not contain standardized diagnostic ports. Among the information being gathered by the device includes: Tracking mileage Time of day Hard or extreme braking, and Speed of the vehicle One company also collects data on left and right turns, which it claims are related to accident risk. The more sudden stops, for example, the greater the chance to rear-end another vehicle. Insurance companies acknowledge that the product is not for everyone. Some consumers likely would not want such a device installed in their vehicles because they wouldn't want a box in their car gathering details on how they drive, which is considered by many a form of invasion of privacy. But Saman Jayasekara, a New Jersey software programmer who has been using one of the available programs for a few months now, is happy he got on board. After a month, he received a 23 percent discount, which could save him hundreds of dollars a year. "Everybody is scared of being monitored," Jayasekara said. "But I'm happy with my discount."
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