The other side of the coin is that some customers must actually use their insurance to alleviate costs incurred from an unexpected misfortune. For this, the in- surance company uses the “free money” it gets from its customers—each and every month—to pay the claim. A lot of people pay much more into the kitty than they are allowed to take out.
    Often the insurers punish the consumers for actually using the services for which they paid. For the person purchasing insurance, it is a relationship without equity. When you have an accident, nobody knows your name.
    The idea is that a huge pool of good drivers and bad drivers, all paying into the pot, equalize the risk for the insurers. As with most businesses, the insurance companies will do whatever they can to limit payouts, reaping a higher profit. Insurance is a betting game. An element of anonymity, with random drivers comprising the pool, provides a statistical balance.
    Now lurking is legislation, California Assembly Bill 2800, allowing insurance companies to track when, where and how Californians drive. The bill, which has already passed out of the Senate Appropriations committee, authorizes different insurance rates for drivers who choose to protect their privacy and those who agree to place a “black box” in their cars.
    “AB 2800 would force drivers to choose between fair insurance rates and protecting their privacy. No driver should have to make that choice,” said Carmen Balber with Consumer Watchdog. “Where I drive, when I get there and whether I stop on the way is not the business of my insurance company, or any other corporation who wants to place eyes in my car.
    “Insurance companies have been fighting mileage-based insurance rates for eighteen years since the voters mandated them in Proposition 103. The industry didn’t change its mind overnight. Insurers back this plan because it will get their spyware into Californians’ cars, while doing nothing to make them more closely tie insurance rates to how far a motorist drives.”