Title: Drivers Shocked to Discover Automakers Sharing Driving Data with Insurance Companies
Kenn Dahl, a careful driver and owner of a software company near Seattle, was taken aback when his car insurance costs suddenly spiked by 21 percent in 2022. Upon investigating, he discovered that his driving data, including details of every trip taken in his leased Chevrolet Bolt, was being shared with insurance companies without his knowledge.
The data was collected by General Motors through their Smart Driver program, which analyzes driving habits such as rapid accelerations, hard braking, and speeding. This information is then shared with data brokers like LexisNexis and Verisk, who in turn provide it to insurance companies to create personalized insurance coverage.
Many drivers, including Mr. Dahl, were enrolled in these programs without their explicit consent. Some were even tracked and had their insurance rates increased without turning on the features that collect driving data. This has raised concerns about privacy and transparency in the automotive industry.
Automakers like G.M., Kia, Subaru, and Mitsubishi are participating in these data-sharing practices, collecting real-world driving behavior from millions of vehicles. While some automakers claim to share limited data or require explicit consent, many drivers are unaware of the extent to which their driving data is being shared.
Policymakers and experts have expressed concerns about these practices, calling for more transparency and consumer awareness. Drivers are encouraged to check their connected car apps, request their driving data reports from companies like LexisNexis and Verisk, and be informed about what data their cars are collecting.
The issue of automakers sharing driving data with insurance companies without clear consent raises questions about privacy, consent, and the impact on insurance rates. As more drivers become aware of these practices, the automotive industry may face increased scrutiny and calls for regulation to protect consumer rights.
