Car insurers turn to third parties to verify mileage
In the past, car insurers relied on drivers to report their annual mileage when renewing their policies. Increasingly, however, insurers are turning to other methods. In 2016, State Farm, a US insurance company, acknowledged that the company verifies the mileage driven by the cars it insures in a variety of ways: directly from customer reports; from monitoring devices plugged into their cars; and in some cases from third-party vendors. These third-party vendors may include car dealers and also oil-change companies. While State Farm informs its customers that the company verifies odometer readings through third-party providers, those third-parties do not always notify drivers that their data will be disclosed.
Writer: Kashmir Hill
Publication: Splinter News