Can privacy concerns for insurance of connected cars be compensated?

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    Internet-of-things technologies enable service providers such as insurance companies to collect vast amounts of privacy-sensitive data on car drivers. This paper studies whether and how privacy concerns of car owners can be compensated by offering monetary benefits. We study the case of usage based car insurance services for which the insurance fee is adapted to measured mileage and driving behaviour. A conjoint experiment shows that consumers prefer their current insurance products to usage based car insurance. However, when offered a minor financial compensation, they are willing to give up their privacy to car insurers. Consumers find privacy of behaviour and action more valuable than privacy of location and space. The study is a first to compare different forms of privacy in the acceptance of connected car services. Hereby, we contribute to more fine-grained understanding of privacy concerns in the acceptance of digital services, which will become more important in the upcoming Internet-of-things era.
    Original languageEnglish
    Pages (from-to)1-9
    Number of pages9
    JournalElectronic Markets
    Issue number1
    Publication statusPublished - 2015


    • privacy
    • mobile services
    • insurance
    • internet-of-things
    • connected cars
    • e-mobility

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