What driving apps collect and how insurers use it

Insurer driving apps and plug-in devices typically record where and when you drive, your speed, braking, acceleration and cornering, and whether you handle your phone, using your phone's GPS and motion sensors. Insurers use that data to set your discount or rate, and many also reserve the right to use it when you file a claim, to investigate fraud, or when required by a subpoena. What is collected, how long it is kept and who can see it are set out in each program's privacy statement and terms, which are worth reading before you enroll.

What gets collected

Telematics programs draw on two kinds of hardware.

Phone apps use the same sensors that power your maps and fitness apps. Progressive's Snapshot privacy statement says its app records "vehicle speed and location using GPS", time information and data from the phone's magnetometer, gyroscope, barometer, proximity sensor and accelerometer. Liberty Mutual says its RightTrack app needs a phone with GPS, an accelerometer, a gyroscope and proximity sensors. Farmers' Signal app uses location sensors, network access, an accelerometer and a gyroscope.

Plug-in devices sit in the car's diagnostic port. Progressive says its Snapshot device records speed, time of day, when it is plugged in and unplugged, and the vehicle identification number, and "may record G-force and vehicle location using GPS". Trip length, mileage and braking and acceleration rates are calculated from those readings.

From the raw data, programs derive the behaviors they score: hard braking, rapid acceleration, speeding, late-night driving, miles driven and handheld phone use. Some programs say they limit collection; GEICO, for example, says its app does not begin logging a trip until after the first quarter mile.

How insurers use it

Pricing

The main use is your rate. Most programs apply a participation discount at sign-up and adjust your price at policy renewal using your score. Some insurers separate what they collect from what they price on: Travelers says location data collected in its IntelliDrive app "is not used to determine your auto premium".

Claims

Many programs allow driving data to be used after an accident. Travelers says individual driving data "may be used for claim services". USAA says it may use SafePilot data "when you file a claim after an accident". Progressive's statement is the most detailed: Snapshot data may be used to detect an accident and offer help, validate the date, time and location of a loss, make liability and coverage decisions, investigate fraud or misrepresentation, and support subrogation or litigation involving the claim. Data can help you — for example, by showing you were stopped when you were hit — but it can also be used to dispute your account of a crash.

Sharing and legal requests

Privacy statements differ on sharing. USAA says it "won't share your driving data with other companies". Progressive says it may share personally identifiable Snapshot data with service providers, with a state insurance department to support renewal rates, with other insurers for subrogation, and when legally required, "such as in response to a subpoena in a civil lawsuit". It may also share data with identifying details removed. Allstate says data for its Drivewise feature is collected and used by Arity, an Allstate affiliate.

Retention

Progressive's Snapshot privacy statement (last updated July 13, 2020) says "We will retain this data indefinitely." Other insurers' retention periods vary. If retention matters to you, look for it in the terms before enrolling.

When driving data comes from somewhere else

Insurers can also receive driving data you did not knowingly share with them. In January 2025, the Texas attorney general sued Allstate and Arity, alleging that Arity paid app developers to embed its software in apps such as Life360, collected location data from more than 45 million people, and that insurers used the data to justify higher premiums. The state said it was the first enforcement action by a state attorney general under a comprehensive data privacy law, the Texas Data Privacy and Security Act. The case concerns allegations that have not been decided by a court. See Texas for state details, and connected-car data, data brokers and your premium for data that automakers shared with data brokers.

What the rules allow

There is no single federal law governing insurer telematics data; rules come from state insurance regulation, state privacy laws and each program's terms. California is the strictest on pricing: insurers there may use a device to verify mileage, but state regulations say an insurer "shall not use a technological device to collect or store information about the location of the insured vehicle" for that purpose. Several states have comprehensive privacy laws that give residents rights to see or delete personal data, with exceptions that can apply to insurance; check your state's law and the insurer's privacy notice.

How to protect yourself

1. Read the privacy statement and program terms, not just the marketing page. Look for what is collected, how long it is kept, and whether it can be used in claims.
2. Check whether your rate can go up, so you know the stakes of the data (see telematics programs from the major insurers compared).
3. Review app permissions. App-based programs need broad location and motion permissions to detect trips automatically; decide whether you are comfortable with that before you install.
4. Correct trips you did not drive. App programs try to tell drivers from passengers, but they make mistakes. Travelers, for example, gives you 10 days to mark a trip as a passenger trip.
5. Know how to opt out and what it costs. Travelers lets you opt out within 45 days with no impact other than losing the enrollment discount; after that, driving behavior may affect your renewal. Liberty Mutual says opting out can change or remove your participation discount.
6. Audit other apps on your phone. Location-sharing, navigation and fuel-price apps may share data with analytics companies. Review their privacy settings and remove permissions you do not need.
7. Request your reports. Consumer reporting agencies that supply insurers must give you your file on request; see Your CLUE report and motor vehicle record explained for how to order claims and other reports.

Key takeaways

• Driving apps use your phone's GPS and motion sensors to record location, speed, braking, acceleration, time of day and phone handling.
• Data sets your discount or rate, and many insurers may also use it in claims, fraud investigations and lawsuits.
• Sharing and retention rules differ by insurer; Progressive's Snapshot statement says data is kept indefinitely, while USAA says it does not share SafePilot data with other companies.
• Texas sued Allstate and Arity in January 2025 over driving data collected through third-party apps; the allegations are unproven.
• Read the terms, manage app permissions, correct misattributed trips and know how to opt out.