Insurance Companies Accessing Driver Data from Internet-Connected Vehicles: New York Times Report

The New York Times recently reported that a significant amount of driver data from internet-connected vehicles is being shared with insurance companies, potentially impacting drivers’ insurance premiums. This revelation has raised concerns about privacy and transparency in the automotive industry.

One of the key players in this data-sharing practice is General Motors, which utilizes its OnStar Smart Driver program to collect and share customers’ driving behavior with data-collection companies like LexisNexis. These companies then sell this information to auto insurance providers, who may use it to determine insurance rates.

The Times highlighted a case where a driver of a leased Chevy Bolt EV saw a 21 percent increase in his insurance rates, only to discover that his driving habits were being monitored and shared without his knowledge. This lack of awareness among drivers about the extent of data tracking in connected cars is a major issue.

While some drivers actively opt-in for usage-based insurance programs, many others may unknowingly agree to share their data when using internet-connected car services. This lack of transparency has prompted California’s privacy regulator to launch an investigation into automakers’ data collection and sharing practices.

GM’s OnStar Smart Driver program, which initially required customer consent for monitoring, may now enroll users without their explicit knowledge. Similarly, other automakers are also engaging in data-sharing practices with companies like LexisNexis, raising concerns about the privacy of driver information.

For drivers concerned about their data privacy, it is recommended to review the privacy terms of connected car services and request a consumer disclosure report from companies like LexisNexis, as mandated by the Fair Credit Reporting Act. As the automotive industry continues to evolve with connected technologies, ensuring transparency and consent in data sharing practices will be crucial for protecting drivers’ privacy.