Can Insurance Tracking Devices Be Used Against You?
Insurance tracking devices promise discounts for safe driving, but they can also be used against you—raising your premiums, denying claims, and even invading your privacy. Before you opt in, know the risks and how to protect yourself from unfair insurance tactics.
You’ve probably seen the ads—insurance companies offering you a sweet discount if you install a tracking device in your car. “Save money for being a good driver!” sounds great, right? After all, if you follow the rules of the road, why not cash in on your good habits?
But here’s the catch: that little device isn’t just watching out for your good habits—it’s also keeping tabs on every sharp turn, every hard brake, and even the time of day you drive. And while it might start with promises of savings, it could end up costing you a lot more than you bargained for. In this article, our Florida car accident attorneys explain how they work, how they’re marketed, and what potential risks you should consider before agreeing to the program.
What are insurance tracking devices?
Insurance tracking devices are small gadgets that plug into your car’s diagnostic port or work via a mobile app. These devices collect data on your driving habits, including:
- Speed
- Braking patterns
- Acceleration
- Time of day you drive
- Mileage
- Phone usage while driving (for app-based trackers)
The goal? To reward safe drivers with lower insurance premiums. Insurance companies use these devices to determine your level of risk as a driver. If you drive within their preferred parameters—smooth acceleration, gentle braking, and avoiding late-night drives—you could see a nice discount on your premium.
It sounds like a win-win situation—if you drive carefully, you pay less. And who wouldn’t want to lower their insurance costs, especially with rates climbing higher every year? But as with most things that seem too good to be true, there’s a hidden downside.
How insurance tracking devices can be used against you
While these devices can offer discounts, they also collect a lot of data—and that data might not always work in your favor. Here’s how:
1. Your rates may go up, not down
What happens if the device determines you’re a “risky” driver? Instead of getting a discount, your insurance company may increase your premiums based on how you brake, accelerate, or even what time of day you drive. If you frequently drive late at night, for example, they might flag you as higher risk—even if you’ve never had an accident.
2. Accident liability and claim denials
If data from a tracking device or app shows you could have contributed to an accident (e.g., speeding, taking a corner too quickly), the insurance company might use it to assign you a higher percentage of fault, potentially reducing the amount they pay out. In some cases, insurers might use the data to fully deny your claim, even if the accident wasn’t your fault, arguing that your driving habits contributed to the incident.
3. Privacy concerns
Do you really want your insurance company monitoring your every move? Some tracking devices collect location data, which could be used to analyze where you go, how often, and when. This raises serious privacy concerns, especially if that data is shared with third parties.
4. Difficult opt-out process
Some drivers find that once they’ve agreed to use an insurance tracking device, opting out can be tricky. Some companies may remove any discounts you earned and could even penalize you with higher rates for discontinuing the program.
Tips for drivers considering insurance tracking devices
If you’re thinking about signing up for a “safe driver” discount program, here’s what to consider first:
✅ Read the fine print – Understand what data is being collected and how it can be used against you.
✅ Ask about rate increases – Will your premium go up if the device flags you as “risky”? Make sure you know the risks before enrolling.
✅ Consider your driving habits – If you frequently drive at night or in heavy traffic, a tracking device might hurt you more than help you.
✅ Check the opt-out policy – Know how difficult it is to leave the program without penalties.
✅ Use a test run – Some insurers offer a trial period where you can see how your driving is scored before committing to the program.
Bottomline: While insurance tracking devices can save you money, they aren’t always the golden ticket they appear to be. These devices give insurance companies a powerful tool to assess risk—but sometimes, that means higher premiums, denied claims, or privacy concerns for drivers. Before you sign up, weigh the benefits against the risks and make sure you’re in control of your data—not the other way around.
What to do if you’re involved in an accident and have an insurance tracking device
If you’re involved in an accident and have an insurance tracking device installed, our Florida car accident attorneys recommend taking the following steps to better protect yourself:
- Document everything – Take photos, get witness statements, and make sure you call 911 to get an official police report of what happened.
- Request the data – Ask your insurance company for access to the tracking data they collect. This can help verify what happened and prevent misinterpretation of your driving behavior.
- Be cautious in statements – Avoid making statements that could be used against you, especially regarding sudden braking or speeding. Let the evidence speak for itself.
- Contact an experienced accident attorney – Insurance companies have teams of experienced lawyers working to protect their interests—not yours. If you’ve been injured in an accident and are worried your tracking device could be used against you, or if your insurer is disputing or denying your claim, you need an experienced lawyer who can fight back.
Avera & Smith: A litigation powerhouse fighting for you
Call 800-654-4659 to speak with our attorneys for free
When it comes to taking on big insurance companies, you need a firm with the experience, resources, and tenacity to win. Avera & Smith has been a litigation powerhouse for over 70 years, helping thousands of Florida accident victims pursue fair compensation.
Discover the Avera & Smith difference:
- Board-certified attorneys – Avera & Smith has multiple board-certified attorneys, a distinction earned by only a select group of lawyers (less than 1% in Florida) who have demonstrated exceptional skill, knowledge, and success in their field.
- Fearless against big insurance companies – We are not afraid to take on the largest insurance companies to fight for your rights. Our track record of landmark settlements against major corporations proves our steadfast commitment to relentlessly pursue justice for our clients.
- Experience with vehicle data cases – At Avera & Smith, we have handled numerous cases where we have used vehicle data to prove our clients are not at fault and to prove the other driver was negligent. This experience is invaluable when handling complex accident cases.
If your insurer is trying to use your own data against you, don’t go it alone—Avera & Smith is here to fight for you. Request a free case review through our online form or call 800-654-4659 to speak with one of our attorneys.