Title: Automakers Caught Selling Driving Data to Insurance Companies, Drivers Unaware
In a shocking revelation, automakers have been selling data about the driving behavior of millions of people to the insurance industry without their knowledge. General Motors, in particular, has been implicated in this data-sharing scandal, leading to some drivers being charged more for premiums based on their driving habits.
The story broke when a reporter discovered that she and her husband were among the drivers whose data had been sold. They had purchased a G.M.-manufactured 2023 Chevrolet Bolt in December, unaware that their driving behavior was being tracked and shared with insurance companies.
Upon receiving their “consumer disclosure files” from data brokers LexisNexis Risk Solutions and Verisk, the couple found detailed breakdowns of their driving habits, including the number of trips taken, distance traveled, start and end times, and instances of hard braking or rapid acceleration. Despite not enrolling in the Smart Driver program, their data was still being collected and shared.
Many other G.M. owners have come forward with similar accounts, expressing outrage at the invasion of their privacy and the subsequent increase in insurance rates. Several lawsuits have been filed against the automaker, alleging that drivers were not adequately informed about the data collection and sharing practices.
In response to the backlash, General Motors has decided to discontinue the Smart Driver program across all G.M. vehicles and unenroll all customers. The company has also stopped sharing data with data brokers LexisNexis and Verisk, forfeiting millions in annual revenue.
The incident has raised concerns about consumer privacy and the lack of transparency in data collection practices within the automotive industry. Drivers are now questioning how they can protect their data and ensure that their privacy rights are respected moving forward.
