Car insurance companies have been offering drivers ways to lower their car insurance premiums by using apps. These programs typically involve downloading an app that tracks your driving habits or mileage, with insurers promising potential discounts in exchange for the data collected.
But some drivers have been surprised to learn that unrelated apps are also collecting and sharing driving data, sometimes resulting in higher insurance rates. Even navigation, shopping and weather apps can track movement patterns that may be linked to driving behavior.
In some cases, this data is sold to third parties or data brokers, who then provide it to insurers. In today’s world of widespread app use, privacy and data sharing are growing concerns. We break down how this data is collected, who’s using it and what you can do to protect yourself.
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How apps that track driving behavior collect data
Car insurance companies are using telematics, systems that monitor your driving, to learn about your driving habits. These smartphone-based insurance programs typically require you to download an app and allow it to track your behavior while you drive.
The apps collect a range of data, including your location, speed, how often you brake hard and whether you use your phone while driving. Some also track mileage, the time of day you drive and how frequently you’re on the road.
While drivers may expect apps that track driving behavior to share data with their insurance companies, many are surprised to learn that other, unrelated apps are collecting and sharing similar data without their knowledge.
Life360, for example, is marketed as a location-tracking app designed to help families monitor each other’s whereabouts for safety. But in January 2025, Texas Attorney General Ken Paxton sued Allstate and its data affiliate, Arity, alleging they “unlawfully collected and sold data about the location and movement of Texans’ cellphones through secretly embedded software in mobile apps, such as Life360.” The lawsuit claims Allstate paid app developers to include its software, allowing the company to track and sell consumer driving data.
Other apps may be doing the same. According to Edmunds, apps like GasBuddy, which tracks local fuel prices, and MyRadar, a weather app, can use your phone’s motion sensors to monitor your driving. That data can then be analyzed and sold to third parties.
How driving data affects insurance rates
(Image credit: Getty Images)
Car insurance companies review driving data to assess how risky a driver you are. Frequent hard braking or speeding, for example, may be seen as signs of risky behavior. The time of day you drive also matters; driving late at night or during rush hour can raise your chances of an accident, increasing the risk for insurers.
Insurance companies promote driving behavior apps as a way to earn lower premiums, rewarding safe drivers with potential discounts. But these apps don’t always work as intended. Reviews of Progressive’s Snapshot app often mention inaccurate tracking and mis recorded trips, which can result in unexpected rate increases.
If you’re not aware that your driving is being tracked, you could face higher premiums without knowing why. Some Life360 users, for instance, have reported unexplained premium hikes.
According to Edmunds, one user, Kathleen Lomax, didn’t realize her driving data was being collected until she contacted the company and learned that Life360 shares data with Arity. Arity can then sell that data to auto insurers, who may use it to generate individual driving scores that affect rates.
How to protect your driving data
There are several ways to help keep your data safe and limit the data that your car insurance company can access.
- Carefully choose your apps: Before installing a new app, thoroughly read its terms and conditions, and pay close attention to the privacy statement and sections on data collection and sharing. If you’re not comfortable with the terms, don’t download and use the app.
- Opt out of data sharing: Some apps offer you the option to opt out of allowing your data to be shared. Using this feature can help protect your data.
- Request a LexisNexis Consumer Disclosure Report: You can request a LexisNexis Consumer Disclosure Report online. It’s free to request a report, and the report can help you identify the types of data that are being shared.
- Use Privacy4Cars tools: Privacy4Cars offers several tools for consumers, including an option to request a vehicle privacy report to see what data your car is collecting. The Privacy4Cars app includes an option to delete your personal information from vehicles.
If you’re uncertain about an app your car dealer recommends or your insurance company promotes, take the time to ask questions before downloading it. Understanding what data an app collects, how it’s used and who it’s shared with can help you make an informed decision.
It’s far easier to avoid sharing your data in the first place than to try to undo it later. When in doubt, err on the side of caution. If an app seems questionable or unnecessary, the safest choice is to skip it entirely. Your personal data and your insurance premiums could depend on it.
Use the tool below, powered by Bankrate, to explore some of today’s best auto insurance offers:
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