Connected vehicles: Are clients concerned about data privacy?

Nearly six in 10 Canadian drivers of connected vehicles worry about data privacy, according to a new survey conducted by Leger on behalf of rate aggregator RatesDotCa.

Vehicles are becoming increasingly connected through telematics, apps, microphones, cameras, sensors and more. But among Canadians who drive connected vehicles, 57% are concerned about data privacy, 23% are very concerned and 34% are somewhat concerned, shows the survey of 1,531 Canadian drivers.

“Connected vehicles have the potential to make driving more convenient and safe, with features such as GPS and motion sensors,” says John Shmuel, managing editor of RatesDotCa. “Connected vehicles can also potentially save drivers money through telematics and usage-based insurance policies.

“These benefits are substantial, and it’s crucial that data security develop in lockstep to keep drivers’ information safe.”

The survey found 43% of polled Canadians say they drive connected vehicles. Of those that do, 34% allow collection of information on driving habits. Of that 34% of drivers, 14% say they allow it for real-time traffic and route optimization, 11% to lower their insurance premiums and 11% for maintenance and safety alerts.

But, of those who drive a connected vehicle, 57% say they have not granted permission for data collection. Interestingly, among connected vehicle drivers, urban dwellers are almost twice as likely as rural residents to allow driving data collection at 40% and 21%, respectively.

But Black, Indigenous and Other People of Colour (BIPOC) connected vehicle drivers are much more likely to allow collection of information on how they drive than Caucasian Canadians (52% compared to 29%), the survey found. At the same time, men and BIPOC Canadians are most concerned about the privacy of their data at 68% and 55%, respectively.

Connected vehicles are a double-edged sword when it comes to insurance. While things like usage-based insurance (UBI) aim to reward safe drivers, some may be inadvertently penalized. For example, if you drive during late hours due to work or other reasons, your premium could increase even if you’re a safe driver, RatesDotCa notes in an article.

Previously, sharing data didn’t penalize drivers. Even if a driver had a few bad driving habits but no convictions or accidents, their premiums remained stable. But now, driving data allows insurers to raise premiums.

In November 2020, Ontario drivers participating in UBI programs started facing an insurance surcharge when they exhibited high-risk driving habits. “Add drivers in Quebec and Alberta to that list,” RatesDotCa says.

As technology continues to advance, striking the right balance between data privacy and seamless user experiences becomes increasingly critical, the rate aggregator says. “The automotive industry continues to face ongoing challenges in this arena, as it seeks innovative solutions that empower consumers while preserving the convenience and efficiency of connected vehicles.”

 

Feature image by iStock.com/metamorworks