Modern vehicles come equipped with sophisticated technology that does more than navigate routes and play music. Many automakers have been collecting detailed driving data from millions of vehicles and selling it to insurance companies without drivers’ full knowledge or consent. This practice has sparked investigations, lawsuits, and regulatory action across the country.
The issue came to a head when the Federal Trade Commission took action against General Motors in January 2025 over allegations the company collected and sold drivers’ precise geolocation and driving behavior data. GM tracked information as frequently as every three seconds for some users, including hard braking, late-night driving, and speeding. This data was then sold to third-party companies that compiled reports used by insurers to set rates.
The revelations have left many drivers shocked and angry. Nearly every automaker has been collecting and sharing driver data, according to recent investigations. Consumers are now pushing back against what they see as unwanted surveillance, leading to legal challenges and changes in how some companies handle customer information.
How Automakers Share Driver Data With Insurance Companies
Automakers collect detailed information about how people drive their vehicles and pass this data through brokers who package it for insurance companies. This practice affects what drivers pay for coverage, often without their full awareness of the system.
What Data Is Collected From Connected Cars
Modern vehicles equipped with internet connectivity track extensive details about every trip drivers take. Connected cars capture information including dates and times of trips, distance traveled, instances of speeding, hard braking, and rapid acceleration.
General Motors’ OnStar Smart Driver program collected granular driving behavior data from Chevrolet Bolt owners and other GM vehicle drivers. One driver discovered his report contained records of 640 trips over six months. Each entry showed specific metrics like a Thursday morning drive of 7.33 miles in 18 minutes with two rapid accelerations and two hard braking incidents.
The systems don’t typically record where drivers go, but they capture nearly everything else about how they operate their vehicles. This connected vehicle data flows from the car’s onboard systems to automakers’ servers, creating detailed profiles of driver behavior patterns.
Role of Data Brokers and Consumer Disclosure Reports
Automakers don’t sell driver data directly to insurance companies. Instead, they work with data brokers who serve as intermediaries in the transaction. LexisNexis operates a Risk Solutions division that specifically caters to the auto insurance industry.
These data brokers receive driving behavior data from manufacturers and analyze it to create risk scores. LexisNexis told drivers the scores help insurers “create more personalized insurance coverage.” Under the Fair Credit Reporting Act, consumers can request their information, which arrives as a LexisNexis consumer disclosure report.
One Seattle software company owner received a 258-page consumer disclosure report detailing every trip he and his wife had taken over six months. The report showed that eight insurance companies had requested his information in just one month. Data brokers maintain these records and make them available to insurers evaluating potential customers or reviewing existing policies.
Impact on Insurance Premiums and Auto Insurance Rates
The sharing of driver behavior data has led to unexpected increases in what drivers pay for coverage. The Seattle Chevrolet Bolt owner saw his insurance costs jump 21 percent in 2022 despite never causing an accident. When he sought quotes from other providers, those rates also came back high.
Insurance companies use the risk profiles generated from connected vehicle data as one factor in determining premiums. Drivers have reported significant rate increases after their driving behavior data entered the system, even when they had clean driving records with no tickets or accidents.
The practice connects to usage-based insurance models, where insurers price policies based on actual driving patterns rather than traditional factors alone. However, many drivers enrolled in these data-sharing programs without fully understanding the implications for their auto insurance rates. General Motors faced pressure and eventually stopped selling customer driving data to insurance companies, though other manufacturers continued the practice.
The Backlash: Privacy Concerns and Consumer Response
Drivers are raising alarms about automakers collecting and selling their behavioral data, with many unaware their connected cars share detailed trip information with insurance companies. The controversy has sparked legal action, regulatory intervention, and a growing consumer movement demanding transparency.
Privacy Concerns With Connected Cars
Modern vehicles equipped with internet connectivity collect extensive information about driving habits. Automakers track when drivers speed, brake hard, or accelerate rapidly, creating detailed profiles of behavior behind the wheel.
The scope of data collection extends beyond basic driving patterns. Companies like LexisNexis receive information about every trip, including dates, start and end times, and distance driven. While precise geolocation data showing exact routes may not always be included, the tracking creates comprehensive records of driving behavior.
Many drivers remain unaware their vehicles transmit this information. Consumer privacy concerns have intensified as people discover the extent of monitoring in their connected cars. The data collection happens continuously in internet-connected vehicles, often without explicit driver knowledge.
Legal, Regulatory, and Consumer Reporting Agency Issues
The Federal Trade Commission took action against General Motors and OnStar over allegations they collected and sold drivers’ precise geolocation data and driving behavior without adequate notification or consent. The FTC’s intervention marked a significant regulatory response to automaker data practices.
Consumer reporting agencies play a central role in the data pipeline. LexisNexis and Verisk receive driving data from automakers and create risk profiles for insurance companies. Under the Fair Credit Reporting Act, these agencies must provide consumers with disclosure reports upon request, revealing what information they hold.
The legal framework treats driving behavior data as consumer reports when used for insurance underwriting. This classification triggers specific disclosure requirements, though many drivers never realize they can request these reports.
How Drivers Are Pushing Back
Drivers are challenging the practice through multiple channels. Class action investigations have emerged examining whether automakers properly informed customers about data sharing with companies that generate insurance risk assessments.
Some vehicle owners discovered the tracking after insurance rates jumped unexpectedly. One Chevrolet Bolt driver received a 258-page report from LexisNexis detailing 640 trips over six months, revealing the extent of monitoring only after his insurance costs increased 21 percent.
Consumer advocates are demanding clearer disclosure at the point of sale. Drivers want explicit consent processes before their vehicles transmit behavioral data to third parties. The pushback has forced some automakers to reconsider their data-sharing programs and communication strategies with customers.
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