The Secret Partnership Between Automakers and Insurance Companies: How Your Driving Data is Being Used to Increase Your Premiums

Automakers and insurance companies are teaming up to share data on your driving habits, leading to potential increases in car insurance premiums. With modern cars containing thousands of computer chips that collect data on everything from engine performance to braking patterns, data brokers like LexisNexis are able to gather detailed reports on your driving behavior.

This information is then sold to insurance companies, who use it to adjust premiums accordingly. Consumers have the right to request their data report under the Fair Credit Reporting Act, allowing them to see exactly what information is being shared.

While there are limited options to opt out of this tracking, individuals can take steps such as disabling data-sharing features in car apps or infotainment systems. Residents of California have the additional option to request that car companies do not share their data.

Privacy advocates warn that disabling certain data features in cars could potentially make them undrivable in the future. However, many consumers are pushing back against the invasive data collection practices and urging for more transparency and control over their personal information.

Next time you review your car insurance policy, consider asking about how your data is being used and shared. By staying informed and advocating for privacy rights, consumers can help protect their personal information from being exploited by large corporations. Share this important information with others to raise awareness about the issue.