Well said @Zerox203 - It really is a mystery for plenty of folks until, of course, they have an accident and find out the hard way.
I was also thinking how this device could be used against the insured. When I lived in Pennsylvania, plenty of NJ residents (where car insurance is one of the highest in the country) would find a way to "live" across the Delaware by listing their friend's or relative's address as their home. If All State found out you never set foot in Pennsylvania, but "lived" there, you'd be in a load of trouble. Lucky for them this isn't a mandatory program yet.