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Automakers collect driving data from customers and secretly provide it to insurance companies, a practice that has led some sober drivers to have their coverage increased or even terminated due to the practice. A new report reveals that
new york times Automakers like General Motors and Ford track driver behavior through internet-connected vehicles and share it with data brokers like LexisNexis and Verisk, making “consumer disclosure reports” about individuals accessible to insurance companies. It was reported this week that the company is creating a .
The New York Times reports that some consumers are seeing their auto insurance premiums go up because automakers are collecting data about their customers’ driving behavior and sharing it with insurance companies. There is. ((Photo by: Drew Angerer/Getty Images)/Getty Images)
Consumer Reports doesn’t tell you where a driver has traveled, but it does provide information about distance traveled and driving behaviors such as “hard braking,” “hard acceleration,” and speeding. Insurers can use these reports to assess the risk of current or potential customers and adjust rates or deny coverage based on the results.
The Times covered the case of Ken Dahl, the driver of a leased Chevrolet Volt. He was told by his insurance agent in 2022 that a LexisNexis report was a factor in a 21% jump in his premiums and learned that he and his wife’s driving habits were being tracked. . .
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“I felt betrayed,” Dahl told the newspaper. “They’re taking information that I didn’t expect to be shared and ruining our insurance.”
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Automakers and data brokers claim they do not collect information without customer consent, but many consumers unknowingly consent to disclosures without reading the fine print. The Times reported that he agreed.
a mozilla report It has been sounding the alarm on automakers’ privacy policies since last September, noting that they share driver data with insurance companies and law enforcement, among other concerns.
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“Modern cars are surveillance machines on wheels, equipped with sensors, radar, cameras, telematics, and apps that can detect everything we do in the car, and even when and where we do it,” the authors say. is writing.
Mozilla suggested that the practice of automakers sharing information with insurers is currently voluntary, but “with broad government support, it could soon become fully mandatory,” although some lawmakers I am objecting to this.
WASHINGTON, DC – September 20: Traffic jams on North Capitol Street for an article on post-pandemic commuting options in Washington, DC. (Photo by Bill O’Leary/Washington Post via Getty Images/Getty Images)
In response to the report, Sen. Ed Markey (D-Mass.) sent a letter to 14 automakers asking them to implement stronger privacy policies for consumers, and last month sent a letter to the Federal Trade Commission asking them to implement stronger privacy policies for consumers. It called for an investigation into manufacturers’ data collection practices.
“New advances in auto technology and services are allowing automakers to siphon vast amounts of data about drivers, passengers, and even individuals outside the vehicle,” wrote Rina Khan, the marquee FTC chair. .
“Based on public reporting on these practices and responses to my own research, automakers face few, if any, restrictions on the collection, use, and disclosure of this data.” continued. “Consumers are often in the dark.”
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Consumers can see what data their vehicles can collect by submitting their Vehicle Identification Number (VIN) at https://vehicleprivacyreport.com/.
Drivers can obtain a LexisNexis Consumer Disclosure Report by requesting it at https://vehicleprivacyreport.com/ and can request a Verisk Report at https://fcra.verisk.com/#/.
