Eventually, the two companies hope that insurers will use it to help set premiums, in states that allow it. Some insurance companies already offer pricing plans based in part on how, when and where customers drive. Customers who opt for these plans usually plug a small device or dongle into the on-board diagnostics port located under the driver’s-side dashboard in most cars. The device transmits data from the car, such as miles driven and rates of acceleration and braking, to the insurance company. More recently, insurers have begun collecting information with smartphone apps. The growing use of telematics in what the industry calls “usage-based pricing” raises a host of privacy, fairness and transparency concerns.

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