Automakers have been under scrutiny for collecting driving data from their customers and sharing it with insurance companies, leading to changes in insurance policies for some drivers, as revealed in a recent report.
Companies like General Motors and Ford are utilizing internet-connected vehicles to monitor driving behaviors, including hard braking and acceleration, which are then shared with data brokers such as LexisNexis and Verisk. These brokers compile “consumer disclosure reports” that insurance companies access to evaluate driver risks and adjust insurance rates or coverage accordingly.
One driver, Kenn Dahl, experienced a significant insurance premium increase after his driving habits were tracked through his leased Chevrolet Bolt, expressing feelings of betrayal upon discovering his data was being used in this manner.
Automakers and data brokers assert that customer consent is obtained for data collection, though it is often buried in the fine print of agreements, leading many consumers to consent unknowingly.
Concerns over privacy and the extensive data collection capabilities of modern vehicles have been raised by organizations like Mozilla, which has highlighted the potential for this information to be shared not just with insurance companies but also law enforcement.
The issue has caught the attention of lawmakers, with Senator Ed Markey pushing for stronger consumer privacy protections and an investigation into automakers’ data practices by the Federal Trade Commission.
In response to the revelations, Ford clarified that it does not share connected vehicle data with LexisNexis or Verisk and that any partnerships for usage-based insurance programs have not been implemented.
Consumers concerned about their data can check what information their vehicle collects by using their vehicle identification number (VIN) and request their consumer disclosure reports from LexisNexis and Verisk to understand better the data being shared.