Allstate used GasBuddy and other apps to track driving behavior

Re:Allstate used GasBuddy and other apps to track driving be... by Scoundreller on Tuesday January 14, 2025 @01:17PM (#42701413)

If insurance pricing is perfect, they’ll charge you $100k+ if you’re going to have a $100k claim.

[ Parent | on HN ]

Re:Allstate used GasBuddy and other apps to track driving be... by diogocp on Tuesday January 14, 2025 @01:45PM (#42701863)

That's not how insurance works.

You buy insurance if there is an uncertain outcome, e.g. a 1% probability of having a $100k claim. In which case you can expect to be charged around 1% of $100k (plus admin costs and whatnot).

Perfect information means you know the exact probability of the event happening. It doesn't mean that you know with certainty whether an event will happen or not. That would require a crystal ball or a time machine.

[ Parent | on HN ]

Re:Allstate used GasBuddy and other apps to track driving be... by bluGill on Tuesday January 14, 2025 @03:22PM (#42703304)

If I'm going to have a $100k claim I'm not going to drive. There is nothing in life worth doing despite it causing a $100k claim. It can wait (or I'll pay for a taxi). However I need to do things and there is a small chance I will do something wrong and thus incure that $100k claim.

[ Parent | on HN ]

Re:Allstate used GasBuddy and other apps to track driving be... by s1artibartfast on Tuesday January 14, 2025 @01:30PM (#42701625)

Underrated comment. perfect prediction turns insurance into a payment plan.

[ Parent | on HN ]

Re:Allstate used GasBuddy and other apps to track driving be... by potato3732842 on Tuesday January 14, 2025 @09:47PM (#42706751)

A really crappy payment plan that has a ton of overhead you pay extra to make up for.

[ Parent | on HN ]