You don't have to raise the rates of someone who doesn't use the tracking; you simply lower the rates of someone who does - that's how the current tracking systems work, several insurance companies already have them.
I'm guessing here (no numbers to back it up), but likely the reason you don't see more of this is safe drivers would sign up for it, and in insurance the safe/low risk drivers are the ones already subsidizing the crazies and making it work. I took part in something similar for my insurance company (Progressive) and received a whopping 6% discount for safe driving.
