Guide
Privacy and Data in Pay-As-You-Go Insurance
What telematics devices and apps actually collect, how insurers use and share it, how long it is kept, and how to limit what you give up.
By Jordan Ellis · Editor
Published · Updated
Answer in brief
Pay-as-you-go programmes collect, at minimum, mileage; most also record time of day, speed, braking and acceleration, and location, and app-based programmes can detect phone handling. Insurers use the data for pricing, and most say they do not share it with third parties for marketing—but privacy policies vary and connected-car data is a growing concern. Mileage-only devices collect least. Read the programme's privacy terms, check whether data can be used in claims disputes, and know how to cancel and have data deleted.
What is collected
| Data | Mileage-only device | Behaviour device | Phone app |
|---|---|---|---|
| Miles driven | Yes | Yes | Yes |
| Time of day | Often | Yes | Yes |
| Speed | No | Yes | Yes |
| Braking / acceleration | No | Yes | Yes |
| Location / trip routes | Sometimes | Usually | Yes |
| Phone handling | No | No | Yes |
How it is used
Primarily to price your policy. Some insurers also use trip data to assist with claims—for example, to confirm the time and location of a crash—which can help or hurt you. Most programme terms state that data is not sold for marketing; some allow sharing with service providers who run the programme. Connected-car programmes that pull data from the manufacturer deserve particular attention, because the manufacturer's own data policies also apply.
Questions to ask
- Exactly what is collected, and is location included?
- Can the data be used against me in a claim or to cancel my policy?
- Who else receives it, and for what purposes?
- How long is it retained, and can I request deletion?
- What happens to my rate if I leave the programme?
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Limiting what you share
Choose a mileage-only device if your goal is purely per-mile pricing. Turn off optional app permissions that are not required. Review the privacy policy before enrolling rather than after.
Entries in this guide
Specific questions answered in more depth.
Questions & answers
Does pay-per-mile insurance track where I go?
Some mileage-only devices do not; most behaviour-based devices and all phone apps collect location.
Can my insurer use telematics data to deny a claim?
Some programme terms allow data to be used in claims handling. Read the terms before enrolling.
Can I delete my telematics data?
Many programmes allow deletion requests, and some states give you a legal right to request it. Ask the insurer.
Terms used in this guide
- Telematics (usage-based insurance)
- Pricing that uses measured driving data—mileage, braking, speed, time of day, phone use—collected by a device, connected car or app.
- OBD-II device
- A small unit plugged into a vehicle's on-board diagnostics port that records mileage and, in some programmes, driving behaviour.
- Connected-car data
- Driving data transmitted by a vehicle's built-in connectivity and shared with an insurer with the owner's consent.
Sources and references
Legal figures on this page (minimum limits, filing periods, statutory benefits) are checked against the primary law or the state insurance regulator listed below. Links and figures last verified Nov 2026.
- Background on: Pay-as-you-drive auto insurance (telematics) — Insurance Information InstituteIndependent researchUsage-based and per-mile pricing models, what telematics programmes measure, and state limits on their use.
- Consumer insurance information — National Association of Insurance CommissionersConsumer guidancePlain-language guides from the body of state insurance regulators; links to every state's insurance department and complaint process.
- Insurance research and advocacy — Consumer Federation of AmericaConsumer guidanceConsumer-side research on auto insurance pricing, non-driving rating factors and affordability.
- What determines the price of an auto insurance policy? — Insurance Information InstituteConsumer guidanceRating factors: driving record, mileage, location, age, gender, vehicle, credit-based insurance score, coverage choices. Notes ZIP-code rating is prohibited in California and Michigan and gender rating is prohibited in seven states.
Practical guidance on this page is original editorial work. Cited sources support factual statements and do not endorse this site. Dollar ranges described as typical or illustrative are editorial estimates, not figures from these sources.
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