Driver data collected by a new app created by insurance giant AAMI could be handed over to police, according to an ABC report.

The AAMI Safe Driver App logs speeding, hard-braking, accelerating, fatigue and phone usage, and encourages drivers to challenge their friends to higher safe driving scores.

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The insurer’s website says the app “uses GPS technology to record your journey and analyse your driving behaviour”, and can track where an incident occurred.

The insurance company said an initial study of 1000 people showed the Safe Driver App had a significant positive impact on how people drove.

An AAMI spokesman told the ABC driving data could be supplied to police when “legally compelled to do so”, but denied data would impact drivers’ claims and premiums.

“The intention of the app was never to collect data to provide to police nor have the police request data from us,” the spokesman said in a statement.

The AAMI Safe Driver App privacy statement says the company is authorised to collect personal information under various laws such as the Anti-Money Laundering and Counter-Terrorism Financing Act.

Many Australian companies are required by law to assist government agencies who are investigating crime.

In the 2014 financial year alone, telecommunications giant Telstra provided law enforcement with Telstra customer information 75,448 times.

Cyber-security expert Wade Alcorn told the ABC it would take minimal effort for police or a company to identify an AAMI Safe Driver App user.

Mr Alcorn said people were unaware of how new technology was creating more data about where they were and what they were doing at all times.

“[It’s] a good example of how consumers can give up more information than they realise and then find it might be used in a different way in the future,” he said.

– with ABC