Larry Johnson thought he was doing everything right. The Atlanta father had a clean driving record, a rising credit score and a practical tool to monitor his family: the Life360 app.
When he started shopping for car insurance recently, the quotes were unexpectedly high, and something wasn’t adding up.
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“The quotes I was getting just didn’t make sense to me,” Johnson told Channel 2. Eventually, an agent told him he had a “low insurance score.”
He later realized that the Life360 app also tracked their driving and fed that data to insurance companies.
“It’s shocking. And it feels like a violation almost,” Johnson said. “I don’t mind signing up for something when I know what I’m getting myself into.”
From safety to surveillance?
Life360 is a popular location-tracking app marketed to families for safety and peace of mind. However, according to Channel 2, Life360 and similar apps may be doing much more than users realize.
A lawsuit filed by Texas Attorney General Ken Paxton alleges that a data broker called Arity — a subsidiary of Allstate Insurance — embedded tracking software into apps like Life360 and GasBuddy.
The software allegedly monitors users’ real-time location and movement without clearly disclosing that companies can use it to adjust insurance prices.
Paxton alleges that “the personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law.”
Allstate has stated that Arity is a separate legal entity, but reporters who contacted Arity received a response from an Allstate email address.
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How does this affect your insurance?
Apps that track motion and location may collect data sold to third parties. These data brokers aggregate your behaviour to create a “driving profile” that insurers can use to determine your risk level and adjust your premium accordingly.
“You’re getting similar quotes from similar insurance companies because they’re pulling from the [same] database,” Johnson told Channel 2.
Tina Marie Johnson also reported that her insurer’s “safe driving” app penalized her for her car’s automatic braking, a safety feature she can’t control. She was also flagged for erratic driving while using a mobility scooter in a grocery store.
Most apps like Life360 or GasBuddy are free to download but often monetize user data.
While you may think you’re only sharing your location to find cheaper gas or keep your kids safe, that data can be repackaged and sold.
What can consumers do?
After learning how Life360 handled his data, Johnson deleted the app and changed how he evaluates new tools.
“I look for location, I look for tracking data, and I look to see what they do with that data and if I can opt out or not. And if I can’t, then I don’t use the app,” he told Channel 2.
Privacy advocates argue that stronger legislation is needed. Recently, Georgian Senator Jon Ossoff and a Louisiana Republican introduced the bipartisan DELETE Act, requiring data brokers to delete consumer information upon request and create a “do not track” list.
“Data brokers are buying, collecting and reselling vast amounts of personal information about all of us without our consent,” said Ossoff. “This bipartisan bill is about returning control of our personal data to us, the American people.”
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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