General Motors Stops Selling Drive Data to Insurance Data Providers
Some drivers saw increased insurance rates due to data sharing.
For years, GM has been sharing driver data with data brokers, who'd then sell that data to insurance companies, which could affect drivers' insurance rates. However, the NY Times recently reported that GM put an end to sharing data with two brokers.
The Drive reached out to GM for a comment and will update this story when we get more information.
GM was collecting driver data, such as acceleration, vehicle speed, braking, and mileage, using its OnStar Smart Driver feature. Some drivers were reportedly unaware of that feature's data-collecting capabilities, which is supposed to be explained at the dealership, but those who knew were promised feedback and even digital badges for good behavior.
However, that data was being shared with data brokers LexisNexis Risk Solutions and Verisk, who'd then sell it to the insurance industry. Earlier this month, the NY Times reported that an owner of a Cadillac XT6 in Florida sued GM after he saw his insurance rates double due to data collected about his driving.
“OnStar Smart Driver customer data is no longer being shared with LexisNexis or Verisk,” said GM Spokesperson Malorie Lucich, according to the NY Times. “Customer trust is a priority for us, and we are actively evaluating our privacy processes and policies.”
Car manufacturers collecting drivers' vehicle data isn't anything new and some do have language in their privacy policies that admit to sharing that data with third parties. Much of that data is now used for semi-autonomous driving features, as automakers use cloud-based data to improve their capabilities. GM's OnStar Smart Driver feature has such language in its privacy policy agreement that customers enroll in at the dealership. It's also worth noting that drivers can unenroll in the Smart Driver feature whenever they want.
It's unclear how GM will continue to use driver data through the OnStar Smart Driver feature but at least we know that it won't be sharing it with those two brokers any longer.
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