Personal lines insurers remain unsure about the usage of monitoring devices in vehicles. Monitoring devices can be used to monitor and measure factors such as speed, location, and driving behaviour of users. 

Chris Gay, Chief Executive Officer at MileMeter, pay-by-the-mile automobile insurer, said that the company employs a number of methods for verifying mileage. These include self-reporting via a photograph of an odometer and by using driver's license. The company however, is hesitant about deploying Telematic devices for measuring mileage amid concerns over cost and privacy.

In a release, Tom Kavanaugh, director of the insurance practice at PriceWaterhouseCoopers, said, “Concern about privacy has played a large role in terms of slowing the [personal lines] carriers' efforts in terms of investing in telematics-based products. One of the main challenges that they've grappled with is creating that compelling consumer-value proposition that doesn't violate the consumers' perception of privacy."

Kavanaugh however believes that privacy concerns will reduce as the younger generation is definitely more comfortable with sharing of personal data over social-networking sites.

Jim Noble, business director for motor fleet at Zurich Services Corp., is of the opinion that privacy concerns among commercial customers still exist, but are "not as deep," because sharing of work data is something employees are used to.

Kavanaugh said, "We're seeing some of those paradigms begin to break down in terms of the consumers' willingness to share information with the entities they transact with.”

General Motors (News - Alert) Co.'sOnStar had to deal with extensive complaints, and cases of customer outrage, because of which it decided to pull back plans for collecting data from telematics devices.

 President Linda Marshall, in a video posted on the OnStar website, while apologizing to OnStar subscribers said, "We've listened and have decided we will not make the proposed change to our policy when it comes to keeping a data connection to your vehicle should you decide to cancel the OnStar service.... Let me reassure you that all of us at OnStar value your trust in us when it comes to the handling of your personal data."