It was sold to the insurance industry so they could more accurately gauge the risk they face. It came to light because some particularly dangerous drivers found their insurance premiums rise to $500+/month.

The counter-example is the world where safe drivers much more heavily subsidize extremely bad drivers. If I have no accidents on my record in 10 years, and have every observable behavior that indicates low risk, why should I pay substantial amounts of money every year because the government does not want insurers to have the data to tell I'm not a high-risk driver?