In a recent development, drivers of vehicles manufactured by popular car brands such as General Motors (GM), Ford, Honda, and others have voiced their concerns about increased insurance rates. It has come to light that these companies have been sharing data about drivers' behavior with insurance issuers without their knowledge or explicit consent.

Kenn Dahl, a Seattle-area businessman, revealed that his car insurance costs for his Chevy Bolt skyrocketed by 21% in 2022. This increase was attributed to the data collected by GM's OnStar Smart Driver system, which monitored and recorded Dahl's driving habits. His insurance agent informed him that the price hike was based on information compiled by LexisNexis, which created a comprehensive report analyzing every detail of his driving over a six-month period.

The extensive 258-page report contained specifics such as trip start and end times, distance covered, and other data indicating possible instances of speeding, hard braking, and sharp accelerations. One trip in June particularly stood out, spanning 18 minutes and 7.33 miles, with the report noting two instances of rapid acceleration and two incidents of hard braking.

Shockingly, Dahl and other drivers enrolled in the OnStar Smart Driver subscription service were not aware that their data would be shared with insurance companies. Dahl described this revelation as a betrayal, expressing his frustration at the insurance companies using information he hadn't anticipated being shared.

The issue extends beyond electric vehicle owners. A Cadillac driver based in Palm Beach County, Florida, disclosed that he had been denied car insurance by seven different companies in December. He intends to take legal action against GM and plans to sell his Cadillac, vowing never to purchase another GM-made car. The driver's denial was based on a LexisNexis report that laid out six months of his driving behavior, including instances of hard braking, hard accelerating, and speeding.

Various car manufacturers, including Subaru, Mitsubishi, Honda, Kia, and Hyundai, are similarly gathering data through internet connectivity and selling it to insurers via brokers like LexisNexis. Verisk, another data analytics company, claims to have accessed driver information from millions of vehicles, including those made by Ford, Honda, and Hyundai.

In response to these allegations, Ford clarified that they do not transmit any connected vehicle data to partners like Verisk and LexisNexis. They only share driver behavior data with insurers if explicit consent is given through an in-vehicle touch screen. Other manufacturers such as Kia, Mitsubishi, Hyundai, Honda, and Acura offer drivers the option to disable data collection related to on-road behavior within their respective apps. However, Honda necessitates the acceptance of a lengthy "terms and conditions" screen, which states that data will be shared with Verisk.

GM defended their OnStar Smart Driver service, stating that it is optional for customers, who give consent three times before limited data is shared with insurance carriers through a third party. They emphasized the benefits of the service, including insights into safe driving behaviors or vehicle performance that can be utilized to obtain personalized insurance quotes. GM also clarified that customers can withdraw from the Smart Driver service at any time.

LexisNexis, the company responsible for compiling driver data from OnStar, stated that the information is utilized by insurers as one of many factors to create personalized insurance coverage.

The growing concerns expressed by drivers highlight the need for increased transparency and control over the sharing of personal driving data. As technology continues to advance, it is paramount that car manufacturers and insurance companies maintain clear communication with their customers to ensure their privacy and consent are respected and protected.