Automakers secretly collect driving data and sell it to data brokers

Major automakers like GM, Honda, Kia, and others are secretly collecting detailed driving data from their customers’ internet-connected vehicles and sharing it with data brokers and insurance companies, The New York Times reported. And here’s the kicker – many drivers have no idea it’s happening. Companies like General Motors, Kia, Subaru, and Mitsubishi have established partnerships with data brokers such as LexisNexis and Verisk to collect “real-world driving behavior” from over 10 million vehicles, according to a LexisNexis news release. This data, which includes info on hard braking, speeding, and acceleration, is then sold to insurance companies to determine premiums. While some drivers opt into usage-based insurance programs, others are unknowingly enrolled when they enable certain features in their cars’ connected apps. G.M.’s OnStar Smart Driver, for example, is touted as a way to “help you become a better driver,” but the fine print reveals that it shares data with third parties. The Fallout Drivers are feeling betrayed and blindsided by these practices. One Chevy Bolt owner saw his insurance jump 21% despite a clean record. A Cadillac driver in Florida was denied coverage by seven insurers after they accessed his driving data. “It felt like a betrayal,” Chevy Bolt owner Kenn Dahl told The New York Times. “They’re taking information that I didn’t realize was going to be shared and screwing with our insurance.” The Pushback Policymakers are taking note of these concerning practices. California’s privacy regulator is investigating automakers’ data collection, and Senator Edward Markey has urged the FTC to do…Automakers secretly collect driving data and sell it to data brokers

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