Apps may be to blame for your rising car insurance costs
A new report by the New York Times suggests your data is being shared while you drive, and it could be costing you.
TheStreet's Conway Gittens brings the latest business headlines from the floor of the New York Stock Exchange as markets close for trading Wednesday, June 12.
Related: Car insurance companies quietly use these apps to hike your rates
Full Video Transcript Below:
I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
The Federal Reserve decided to keep interest rates unchanged at its June meeting. The Central Bank also indicated that there would only be one rate decrease coming this year.
Investors are also reacting to fresh data that revealed inflation remained moderate in May. Total consumer prices were surprisingly flat - logging the slowest rate of inflation since July 2022. Gasoline prices saw a big 3.6 percent drop last month and airline fares were down as well, which offset a rise in food prices and housing costs. Over the past 12 months, consumer inflation was up 3.3 percent in May, which was slower than the prior month, but still above the Fed’s 2 percent comfort level.
In other news - the apps on your phone may be the reason your car insurance coverage is getting more expensive. According to a report by the New York Times, car insurance companies are secretly collecting data on your driving habits through apps like Life360, MyRadar, and Gas Buddy.
The apps then send the data to a company called Arity, which is owned by Allstate. Arity creates a “driving score” based on how often users speed, slam their brakes, or are distracted by their phones. Now, while users consent to having their data shared when they agree to the user agreements, it’s not made clear how that data will be used.
For example, when GasBuddy users turn on its app’s Drive feature they agree to Arity’s privacy agreement. But according to the Times’ report, the agreement is “in small gray font” and is located under a “big red button” that says “Join Drives.” The disclosure says that users will share “certain information” with Arity and contains language that “does not explain what Arity is or what if does.”
Arity claims that it has over 40 million “active connections” to U.S. drivers.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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