The concern is what other pieces of information are they collecting, and when and who do they share that information with. Does it also collect data on what places you visit, or what kind of potentially controversial information you look up. People are concerned about things like visits to a hospital making its way to their employer and insurance against their will, or a trans person being outed by the ads they are served in front of their family, or maybe that the police will knock down their door because their GPS falsely placed them at the scene of a crime. Or what if they live in an actual fascist regime, and that government comes knocking because they searched for something verboten. Even aside from all that, all this data is inherently your’s, and yet all these companies collecting it are just taking it from you without your explicit knowledge or consent and without you seeing even a dime or what a quick search tells me is a multi-billion dollar industry.
To answer your question about the insurance thing, yes. Yes, that is a thing that is happening today. https://www.nytimes.com/2024/03/11/technology/carmakers-driver-tracking-insurance.html