Title: Lawsuit Alleges Cadillac Spied on Driver, Resulting in Higher Insurance Rates
When Romeo Chicco attempted to secure auto insurance in December, he faced rejection from seven different companies. Eventually, when he did obtain insurance, the rate was nearly double what he had been paying previously. The reason behind this sudden increase in rates? His 2021 Cadillac XT6 had allegedly been spying on him.
Modern cars have been likened to “smartphones with wheels,” as they are equipped with internet connectivity and various sensors and cameras. According to a federal complaint seeking class-action status, an agent at Liberty Mutual informed Mr. Chicco that he had been denied coverage due to information found in his LexisNexis report. LexisNexis Risk Solutions, a data broker, typically provides insurers with details on drivers’ driving history, prior insurance coverage, and any accidents.
Upon requesting his LexisNexis file, Mr. Chicco discovered that it contained information on 258 trips he had taken in his Cadillac over the past six months. The data included the distance traveled, trip start and end times, as well as instances of speeding, hard braking, and accelerating. Shockingly, this data had been supplied by General Motors, the manufacturer of his Cadillac.
In response, Mr. Chicco filed a complaint against General Motors and LexisNexis Risk Solutions, accusing them of violating privacy and consumer protection laws. This lawsuit comes on the heels of a report revealing that automakers have been sharing driving behavior data with the insurance industry, leading to increased insurance rates for some drivers. Data brokers like LexisNexis Risk Solutions and Verisk claim to possess real-world driving behavior data from millions of vehicles.
Despite Mr. Chicco’s claims that he never signed up for OnStar or the Smart Driver program, General Motors stated that customers could enroll in these services through their connected car app or at the dealership. The company emphasized that customer consent was required for sharing data with third parties and that customers could opt-out of the Smart Driver program at any time.
Legal experts, including David Vladeck, a Georgetown law professor and former head of consumer protection at the FTC, have raised concerns about the sensitivity of driving data being collected without explicit consent. Vladeck predicts a wave of investigations by the FTC and lawsuits against automakers and data brokers in the near future.
As the controversy unfolds, Mr. Chicco’s case sheds light on the potential privacy implications of connected cars and the need for greater transparency and consent in the collection and sharing of driving data.
