Title: Automakers Selling Driving Data to Insurance Industry Raises Privacy Concerns
Automakers have been selling data about the driving behavior of millions of people to the insurance industry, leading to increased premiums for some drivers without their knowledge. A recent investigation revealed that General Motors (G.M.) had been providing data to insurance companies without informing affected drivers.
One of the drivers affected by this data sharing was a reporter who broke the story. After purchasing a G.M.-manufactured 2023 Chevrolet Bolt, the reporter’s husband received consumer disclosure files from data brokers LexisNexis Risk Solutions and Verisk, detailing their driving behavior. Despite not enrolling in OnStar or Smart Driver, their driving data was still being shared with insurance companies.
Many G.M. owners have since come forward with similar accounts, expressing outrage over the increased insurance rates they faced due to the data sharing. In response to the backlash, G.M. announced the discontinuation of the Smart Driver program across all G.M. vehicles and stopped sharing data with data brokers.
The investigation also uncovered the questionable practices used by dealerships to enroll customers in programs like OnStar and Smart Driver without their explicit consent. The lack of transparency and clarity in the enrollment process raised concerns about privacy and data security.
As the automotive industry continues to collect and share driving data, concerns about privacy and consent remain at the forefront. Consumers are advised to be vigilant about their data and take steps to protect their privacy when using connected car services.
