The Canadian Automobile Association is not opposed to insurance companies using data gathered by devices installed in vehicles, provided precautions are taken.

Most cars built within the past decade have an event data recorder. Although they record much less than an airplane's little black box, they can monitor driving habits.

Jeff Walker, vice-president of public affairs for CAA, says allowing insurers access to that information could lead to lower premiums.

"We think there's a real opportunity, frankly, for drivers to get benefits from it," he said.

But Walker contends consumers should have the choice whether to allow insurance companies to have access to the information.

In addition, consumers must be fully informed about what the information will be used for, he said.