Fact Check: "Untapped mobile app sells their information to insurance companies"
What We Know
The claim that "untapped mobile app sells their information to insurance companies" has some basis in reality, particularly regarding how certain mobile applications collect and share driving data. According to a report by The New York Times, various smartphone apps, including Life360 and GasBuddy, have features that allow them to collect driving behavior data. This data is then sold to analytics companies like Arity, which in turn provides this information to insurance companies for the purpose of determining insurance rates based on driving habits.
The article notes that many users may not be fully aware of this data-sharing practice, as the consent processes are often murky and not clearly communicated. For instance, users may opt into features that track their driving without realizing that this data could be used for insurance purposes. Furthermore, automakers have also been implicated in this data-sharing practice, as they collect driving data from connected vehicles and share it with data brokers like LexisNexis, which then sells it to insurance companies (source-2).
Analysis
While the claim has merit, it is important to clarify the context and specifics of how data is shared. The assertion that "untapped mobile app" sells information may be misleading if interpreted to mean that all mobile apps do so indiscriminately. The data-sharing practices are primarily associated with specific apps that have features for driving analysis, and users must opt into these features, often without a clear understanding of the implications.
The reliability of the sources discussing this issue is generally high, as they come from reputable publications like The New York Times and Edmunds, which have investigated the practices of both app developers and insurance companies. However, there is a potential for bias in how the information is presented, particularly if the focus is solely on the negative aspects of data collection without acknowledging the potential benefits of personalized insurance rates based on driving behavior.
Moreover, while some apps do collect and sell data, others explicitly state that they do not share personal information for insurance purposes, as noted in the case of MyRadar (source-1). This indicates that the landscape is not uniform and varies significantly between different applications.
Conclusion
The claim that "untapped mobile app sells their information to insurance companies" is Partially True. While it is accurate that certain mobile apps collect driving data and share it with insurance companies, this does not apply universally to all apps. Users often consent to this data collection, albeit sometimes without fully understanding the implications. Therefore, while the claim has a factual basis, it requires more nuanced understanding and context.
Sources
- Is Your Driving Being Secretly Scored? - The New York Times
- Automakers Are Sharing Consumers' Driving Behavior With Insurance Companies - The New York Times
- Phone Apps Are Selling Your Driving Data to Insurance Companies - Edmunds
- These apps track your driving habits and sell that information to ... - TechSpot
- Smartphone Apps Secretly Score Your Driving For Insurance Companies - Carscoops
- Car insurers secretly collecting driver data through apps: report - New York Post
