Are insurance apps watching you?

Most people download an insurance app for a simple reason. They want a discount. Maybe it is a safe driving program. Maybe it is a wellness incentive. Either way, the pitch sounds simple. Share a little data and save a little money. But what exactly are you sharing?

 Jan emailed us with a question that many people have probably wondered about:

"To get lower insurance, they have the app, and I use Travels, but I know other ones have it. When I opened it up, I noticed that it looks like they can access your health information and all kinds of things, and I don't know if there's a way to prevent them from following everything that's on there. I am sure you have an opinion on this, and if it's worth the 10% off from the get-go, and the following year."

— Jan S.

Jan, you’re not alone. Many insurance companies now offer programs that promise lower premiums if you install their app and agree to share certain types of data. That can include how you drive, where you travel and, in some cases, limited health or fitness information if the app connects to systems like Apple Health. The key point is that these programs are usually optional, and the data sharing is part of the trade.

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The good news is that you can often limit what these apps can see. The bigger question is whether the discount is worth the access.

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How insurance apps track your driving and health data

CyberGuy has previously covered telematics programs where insurers track driving behavior through smartphone apps or connected car data. Those programs monitor things like speed, braking patterns and the time of day you drive. In another report, we explained how your car may be sharing driving data with insurance companies.

We've also reported on how apps collect and sell personal data, including sensitive health information many users assume stays private. What has not always been discussed together is the broader pattern. Insurance companies are increasingly using smartphone apps to gather behavior data about both how you drive and how you live. Your phone becomes the measurement tool. For you, that raises a simple question. How much personal data are you willing to trade for a discount?

What data insurance apps can track about you

The details vary depending on the program. However, many insurance apps collect several types of information.

For driving programs, apps may monitor:

• Location
• Speed
• Braking and acceleration
• Time of day you drive
• Motion patterns detected by your phone

The goal is to calculate a driving score. Safer drivers may receive a discount when the policy renews. Some insurance apps also ask for access to other phone data, such as Motion & Fitness or camera permissions.

On the health side, programs may connect to health and fitness platforms. If you grant permission, the app may read data such as:

• Steps or activity levels
• Workout information
• Limited health metrics stored in Apple Health

It is important to understand that apps typically cannot see this data unless you grant access during setup. Still, many people click through permission screens quickly and later wonder what they agreed to share.

Why insurance app tracking raises privacy concerns

Location data alone can reveal a surprising amount about a person's life. It can show where you live, where you work and where you travel every day. Driving patterns can also reveal how often you are on the road at night or during busy traffic periods.

Health and fitness data can paint an even more personal picture. That does not mean insurers are secretly spying on everything in your phone. But the more permissions you grant, the more insight the app may gain into your routines and habits.

That is why we encourage you to review app permissions carefully.

Are insurance tracking apps optional?

In most cases, yes. Insurance companies typically frame these programs as voluntary discount opportunities. If you enroll, you agree to share certain data that helps calculate a risk score.

If the data shows safe driving or healthy activity levels, you may receive a discount at renewal. However, if you decide you are uncomfortable with the tracking, you can usually opt out. Just keep in mind that the associated discount may disappear.

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How to limit what an insurance app can access

The good news for Jan and anyone else wondering about this is that you can adjust permissions on your phone. These controls exist on both iPhone and Android devices. A smart approach is to review every permission the app requests and only allow what is truly necessary.

Limit location tracking

On iPhone:

• Go to Settings
• Tap Privacy & Security
• Click Location Services

Find the insurance app and adjust its access. You can often set location access to:

• While Using the App
• Never

On Android:

Settings may vary depending on your Android phone’s manufacturer

• Go to Settings
• Tap Location
• Click App permissions

or

• Go to Settings
• Tap Security and Privacy
• Tap More privacy settings at the very bottom
• Click Permission Manager
• Tap Location

Find the insurance app and choose a more limited option, such as:

• Allow only while using the app
• Don't allow

These settings help prevent constant background location tracking.

Check health data access

If an insurance app connects to Apple Health or Google Health Connect, you can manage that separately.

On iPhone:

• Go to Settings
• Scroll down to the bottom and tap Apps
• Tap Health
• Click Data Access & Devices

Select the insurance app to see what information it can read. You can turn off specific categories of health data.

On Android:

Settings may vary depending on your Android phone’s manufacturer

• Go to Settings
• Click Privacy or Security and privacy
• You might have to click More privacy settings at the bottom of the screen
• Tap Health Connect
• Tap App permissions

There, you can see which apps have permission to read or write health and fitness data, such as activity or workout information. You can turn those permissions off if you prefer.

Review other permissions insurance apps request

While you are already in your phone's Settings reviewing permissions, it is also worth checking access to:

• Camera
• Motion & Fitness
• Contacts

Only allow the permissions the app truly needs to function. This follows a simple security principle called least privilege. Give an app the minimum access it needs to work. Not every permission it asks for. For example, a driving app may need motion data to measure braking. But it may not need continuous location tracking or access to health records. By limiting permissions, you reduce how much information the app collects.

Is the discount worth it?

This brings us back to Jan's question. Is a 10 percent discount worth the trade? For some people, the answer is yes. If you are comfortable sharing driving data and the program is transparent about how it works, the savings can add up. For others, the trade may feel too intrusive. The most important thing is understanding what the app can access and deciding whether the benefit outweighs the data you share. A discount can be helpful. But privacy has value too. 

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Pro tip: Reduce how much of your data is available online

Insurance apps are only one way companies can collect information about you. Data brokers also gather location patterns, behavioral details, and personal information from apps and online activity. Using a data removal service can help reduce how much of that information is available online.

While no service can guarantee the complete removal of your data from the internet, a data removal service is really a smart choice. They aren't cheap, and neither is your privacy. These services do all the work for you by actively monitoring and systematically erasing your personal information from hundreds of websites. It's what gives me peace of mind and has proven to be the most effective way to erase your personal data from the internet. By limiting the information available, you reduce the risk of scammers cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you.

Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting CyberGuy.com.

Get a free scan to find out if your personal information is already out on the web: CyberGuy.com.

Kurt's key takeaways

Insurance apps reflect a bigger shift in how companies assess risk. Instead of relying only on traditional factors like age or claims history, insurers can now measure behavior through the device in your pocket. That can reward safe drivers and active lifestyles. It can also create new privacy questions that many of you never expected to face when you downloaded an app. Jan's instinct to question what the app could access was exactly right. Before accepting a discount, take a few minutes to review permissions and decide what level of tracking you are comfortable with. Your phone holds a lot of personal information. It is worth making sure you stay in control of it.

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Here is the question for you: Would you trade detailed data about your driving or health for a lower insurance bill? Let us know by writing to us at CyberGuy.com.

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