Vehicle Monitoring Systems Raise Serious Privacy Concerns

Texas Auto Insurance Company, MileMeter, Rejects Use of Data Collection Named in Federal Lawsuit

DALLAS--(BUSINESS WIRE)-- A federal lawsuit filed by the fourth largest U.S. auto insurer alleging patent infringement on a motor vehicle monitoring system spotlights serious concerns about privacy. The systems collect data on the driving practices of customers and are used in accident or ticket forgiveness programs. The information also can be used to help determine insurance rates for what is now commonly referred to as pay-as-you-drive (PAYD) insurance.

The lawsuit, filed by Ohio-based Progressive Corp., accuses Massachusetts-based Liberty Mutual Group Inc. of infringing on a patent it received in 2000 for a motor vehicle monitoring system that collects data regarding location, mileage, speed and other information from an onboard computer used to calculate a safety score on the driver. According to the lawsuit, Liberty Mutual uses the technology in its Safeco program called “Rewind” and the “Onboard Advisor” used by Liberty Mutual’s Ohio Casualty unit.

Rapid innovation has brought numerous challenges to the industry, but there is an alternative way to offer PAYD products without the use of vehicle-tracking devices. One such company is MileMeter, a Dallas-based, per-mile auto insurer that holds more than 100 patent pending claims across multiple filings and uses no GPS or vehicle-installed tracking technology. Tracking devices infringe upon consumer privacy, also raising the cost of insurance, according to Chris Gay, founder and president of MileMeter. “Intellectual property is an asset class and we applaud Progressive for defending its investments,” Gay said.

Launched in 2008, MileMeter is the first and only company in the United States offering true pay-per-mile auto insurance. Drivers pay for insured miles in advance, purchasing only what they need and buying additional miles online when needed. Rates are based only on age, location and vehicle. In addition to saving money for its customers, MileMeter’s program encourages customers to drive less, which helps reduce pollution and traffic congestion.

Its innovative business model has garnered national attention with profiles by major news outlets, including the Wall Street Journal, Fox Business News, Fast Company and CNN Money.

MileMeter directly offers by-the-mile auto insurance to drivers in Texas, however, it is actively licensing its product and technology to existing insurance carriers in other markets. MileMeter’s goal is to serve the market so that national customers can also benefit, helping revolutionize how drivers buy auto insurance.

About MileMeter

Based in Dallas, MileMeter Insurance Company is the first and only auto insurance company in the United States to sell per-mile auto insurance, with over 100 pending patent claims. Visit www.milemeter.com to learn more.

C. Pharr & Company for MileMeter
Leah Ekmark, 972-931-7576, ext. 22
[email protected]

Source: MileMeter Insurance Company