Concerns Rise as Car Companies Share Driver Data with Insurance Providers

The recent revelation that car companies are sharing driving data with insurance providers has left many drivers feeling betrayed and frustrated. According to a report by The New York Times, carmakers like GM, Honda, Kia, Subaru, Hyundai, and Mitsubishi have been collecting data on drivers’ braking, accelerating, and turning performance and sharing it with insurance companies.

One driver, Kenn Dahl, a Chevy Bolt driver, saw his insurance rates jump by 22% in 2022, despite not reporting any incidents to his insurance company. When he investigated further, he discovered that his driving tendencies, including hard braking and accelerating, were being tracked without his knowledge.

This practice has raised concerns among drivers about privacy and transparency. While some cars with connected data features can communicate driver data to insurers, drivers may have the option to turn off data sharing with their individual vehicles. It is crucial for drivers to review their terms and conditions to understand what data companies can collect.

The increase in insurance rates is part of a larger trend of rising costs in the industry. Car accidents are becoming more frequent, and the cost to repair vehicles has increased significantly. Insurance companies are also negotiating higher medical bills, leading to additional financial burdens for drivers involved in severe crashes.

Overall, the issue highlights the importance of transparency and control over personal data, as well as the need for drivers to stay informed about their insurance policies and coverage options.