I got an email from Progressive today. I have my car insurance through them, and they sent me an email six months ago offering me $50 if I chose to install a TripSense in my car. The idea was that the data would help them conduct some research, and every six months, they would email me and request the data.

Well, the time has come, but I’m starting to have second thoughts. In my Service Design course on Monday, we had a guest lecturer from a company called Peer Insights. I can’t find a website for them, but they were written up in Business Week. Peer Insights specializes in trying to create services that result in good experiences for the customer.
An example that they gave was car insurance - the experience is mostly a negative one, because your rate can always go up, but it can never really go down (unless an accident leaves your record, or you turn 25, etc). It’s a punishment model, really: If something bad happens, customers are punished, but they are never rewarded for good driving.
The folks at Peer Insights offered Progressive’s TripSense as an example of fixing the punishment model - by studying how individuals drive, Progressive can adjust the rates accordingly.
Hooooold the phone. I went back and found a little excerpt from my offer letter to start using the TripSense. It goes a little something like this:
The data you provide are for research purposes only, and will not, under any circumstances, have an effect on your current or future car insurance rate.
So which is it? If Progressive really is trying to move toward a more accurate model, which Peer Insights seemed relatively sure of, then I’m suddenly not feeling a lot of trust for my insurance company. But on the other hand, I’m getting an immediate reward of $50, which is always nice. Should I just take the money, or should I be a little more skeptical?