Automakers have been accused of sharing driving data with insurance companies without proper consent, leading to potential increases in auto insurance premiums for some drivers. Brant McDonald, a farmer from Valdosta, Georgia, discovered through online forums that General Motors and other automakers may be selling driving data to insurers. McDonald requested a consumer disclosure report from LexisNexis, revealing detailed information about his driving behavior being tracked and shared without his knowledge or consent.
Several class action lawsuits have been filed against General Motors, OnStar, and data brokers like LexisNexis and Verisk Analytics, alleging that driving data was collected without proper consent and sold to insurance companies, resulting in higher premiums for drivers. Senators Ed Markey and Ron Wyden have called for an investigation by the Federal Trade Commission into the invasive data privacy practices of automakers like GM, Honda, and Hyundai.
In response to the backlash, General Motors announced the discontinuation of OnStar Smart Driver and the termination of partnerships with data brokers. The company stated that it would enhance privacy controls for greater transparency. Andrea Amico, founder of Privacy4Cars, recommends using VehiclePrivacyReport.com to understand the data collected by vehicles and how it is used by manufacturers.
Despite not experiencing an increase in his auto insurance premiums, McDonald expressed his discomfort with the situation and his decision to avoid purchasing another GM vehicle in the future. General Motors emphasized that customer data privacy is a top priority for the company and that updated privacy policies aim to enhance clarity and accessibility for customers.
The lawsuits against automakers and data brokers highlight the importance of consumer privacy and the need for transparency in data sharing practices. It is crucial for drivers to be aware of how their data is being collected and used by automakers and to take control of their privacy settings when possible. The ongoing legal battles serve as a reminder for companies to prioritize consumer privacy and data protection in the digital age.
