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You’ve probably seen insurance advertisements that claim you can lower your monthly rate by installing a GPS tracker. Lowering your insurance rate is always a good thing, but at what cost? USA Today recently reported that some insurance companies may be selling this information to the U.S. Government. Further, according to the article, the government is considering making vehicle tracking mandatory for all U.S. drivers. Why would the government be interested in your driving habits? The answer is two-fold.

First, tracking your driving habits means that sending out violation tickets will become even easier for law enforcement.Second, this evidence can be used for — or against — you if an accident occurs.

Sure, the GPS tracking data that your insurer collects will be used to lower your rates (if you can play by the stringent rate lowering rules), but it is also used by police and government officials. Right now, you have the option to skip the installation of a tracker and go on paying regular insurance rates. But, this may not be a choice in the near future.

Presently, the U.S. Government requires that all long-haul vehicles be equipped with tracking devices. Soon, the government may require all regular vehicles to include tracking technology too.

If you’re tempted by offers of low insurance rates, read the fine print, and make sure that this data will not be used in any other manner. If you hardly ever get slapped with traffic tickets or find yourself in an accident, it may be best to skip those tempting insurance offers for the time being. Only time will tell if vehicle tracking will be mandatory a year or so from now.

Article Written by Harriette Halepis