Insurance companies apparently seem to think it’s useful, but I find it extremely hard to believe it would be more useful than, say, even the most basic information about one’s driving behavior, like whether one drives 1,000 miles a year or 50,000.
They mostly deal with numbers on the macro scale. If 10,000 miles per year is a good representation of how much the general populous drives, it’s good enough for them. This is why we’re seeing more niche insurance companies pop up (MetroMile, et al) who can offer “smarter” rates based on a more granular assessment of risk.
All else equal a driver who does 5000 miles a year will have half the adverse events of Someone driving 10,000 miles/year. That’s a huge difference that makes no sense of lump together. And yet only a few (non-commercial) insurers, like metromile, account for it. It makes no sense.
I don't think that'd be less useful, but they can't trust what you say: "sure, I only drive very little, very carefully, and very slowly" is not something they can check.
If they can, they'll use it: that is why black box car insurance exists.
I also think the simpler the algorithm, the harder it is to game.
“Oh wait, I almost never drive, but when I do, I’m either drunk or speeding. Well, I’ll sign up with this insurance company which offers me a discount because I drive so little!”
