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How your car might be selling you out to insurers

Kurt Knutsson132.8K views

There’s a reason your auto insurance premium may be going up.  It’s not that you had an accident or any traffic violations on your record.  Instead, as some people are discovering, insurance companies are sourcing personal driving data from car manufacturers that can reveal if you are a higher risk to insure.

Nowadays, with everything going digital, the intersection of privacy and technology has extended into the automotive industry, with a concerning trend emerging around vehicles acting as sources for collecting sensitive data. This includes sharing drivers’ behaviors with insurance companies, a practice that has brought to light significant privacy concerns among vehicle owners.

 

Speeding, hard braking, and rapid acceleration

A case in point involves a software company owner from Seattle who found his car insurance premiums increased by 21 percent unexpectedly despite a clean driving record, according to a New York Times report.

This led to the discovery of a data broker that specializes in generating consumer risk profiles for insurers, which had comprehensive records of his driving habits, including details on speeding, hard braking, and rapid acceleration.

 

MORE: WHAT YOUR CAR KNOWS ABOUT YOU AND COULD BE TELLING THE WORLD 

 

Permission to spy is often hidden in the fine print

This practice is widespread, with drivers across the country often unknowingly giving consent for their driving data to be shared with third parties, including insurers. This consent is frequently hidden in the extensive privacy policies and fine print, making it difficult for the average consumer to notice. Automotive manufacturers, in partnership with data brokers, are leveraging systems to gather and analyze data directly from internet-connected vehicles.

While there are claims that the objective behind collecting driving data is to encourage safer driving habits through feedback programs, it appears the primary motivation is financial profit. This data collection not only impacts insurance rates but also feeds into a growing market where driving data is treated as a commodity.

 

 

MORE: BEST DASH CAMS FOR YOUR CAR  

 

Demand for consumer protection laws

The legal and ethical issues surrounding such data collection practices have garnered attention from policymakers and privacy advocates alike. There have been calls for investigations by federal agencies into these practices, highlighting potential violations related to unfair and deceptive business practices that harm consumers.

For consumers looking to protect their privacy and avoid potential financial impacts from these data-sharing practices, several proactive steps can be taken.

MORE: BEST CAR ACCESSORIES 

 

How to discover what data your car is collecting about you

1) Search Google with your car maker and the phrase “privacy request form.”  In the case of my two cars, it sent me to the manufacturers’ forms, where you can fill out a request to see what sort of data is being recorded.

2) Review any app connected to your car.  Look for terms and conditions on the app to discover any permissions you may have inadvertently given your car maker to collect.  If it permits you, copy and paste the fine print into ChatGPT or another generative AI source to reveal what private data is being collected by your car.  See if there are choices to opt out of data collection in the app settings.

3) Understanding vehicle data capabilities. Tools are available online to help understand what data your vehicle can collect. You can enter your vehicle identification number at the website www.vehicleprivacyreport.com to broadly learn more about what data may be captured from your car.

4) Get your LexisNexis report at https://consumer.risk.lexisnexis.com/consumer. You have the right to request reports from data brokers to see what information is collected about your driving habits.

It’s important to carefully review privacy policies and terms of service when purchasing a vehicle or signing up for connected services, opting out of data-sharing features where possible.

 

Kurt’s key takeaways 

As vehicles become increasingly connected, it’s crucial for you to remain vigilant and informed about how your data is being used, ensuring you maintain control over your personal information and mitigate any undesired financial consequences.

How do you feel about your car maker selling your driving habits to others? Let us know in the comments below.

FOR MORE OF MY TECH TIPS & SECURITY ALERTS, SUBSCRIBE TO MY FREE CYBERGUY REPORT NEWSLETTER HERE

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13 comments

Larry H. March 14, 2024 - 5:32 am
I've been in the insurance world as an agent for 40 + years and do see "some" of the issues with this data being used but on the flip side of the coin there are many drivers out there that could benefit from the data. The safe driver's, the ones that don't accelerate rapidly, brake early, and maintain their car so it operates correctly. Many years ago progressive insurance gave drivers an apparatus that monitored their driving and gave credit where credit was due it's just now the car does it via the manufacturer. I know there is a fine line but if people know they are being monitored they "MIGHT" drive more reasonably, and that is my hope.
Dan C March 14, 2024 - 5:39 am
Very upset to learn that my car maybe collecting and selling my driving habits. It also upsets me to now have to spend more time researching what is being tracked. It’s a constant attack on the individual!
Tracy R March 14, 2024 - 5:54 am
I TOTALLY Believe ITS ANOTHER GREAT EXAMPLE OF - "GOVERMENT LOBBIEST" USING BIG MONEY - TO PLAY "BIG BROTHER" ON US- EVERY DAY- AMERICANS PRIVACY - THAT WE HAD NO IDEA OF- EXAMPLE- I HAVE A SUPER NICE CAR - EVERY BELL AND WHISTLE POSSIBLE ( THAT ARE BEING HELD OUT BY OTHER COUNTRIES RIGHT NOW- ELECTRIC SEAT WARMERS ( ALL SEATS - CROSS OVER VEHICLE) STEARING WHEEL WARMER, MEMORY HELD PLAYER UNLIMITED- BEST POINT - ITS A 2015 WITH ONLY 33,000 MILES ON IT- SERIOUSLY- ONLY DRIVEN 1 TIME A WEEK MAYBE! AND PAID FOR! YET- THE INSURANCE ON IT - STILL KEEPS CREEPING UP ON IT??? AND WHEN WE QUESTION THE INSURANCE COMPANY ABOUT THIS- THEY DONT EVER HAVE A GOOD ANSWER- BECAUSE, COMPLETELY CLEAN DRIVING RECORD, NO WRECKS - NOW THIS BIG BROTHER MAKES ALL THE SENSE IN THE WORLD!!
Fazer j. March 14, 2024 - 7:03 am
Good Morning Kurt, Thanks for all you do. I look forward everyday to your email. My wife spotted your column and I started becoming an avid reader of yours. I am so tired of the government intrusiveness. Spyware. I am going to follow through on all of this information you have related to us. God Bless and be safe.
Lori March 14, 2024 - 7:35 am
I think collecting data about my driving habits is a violation of my privacy rights. I did not sign permission to do this. We need to call this to lawmakers attention and ask for action on this practice
Lourdes M March 14, 2024 - 8:02 am
I find my privacy violated and I am disgusted this is like Big Brother is watching for profit.’
Martin March 14, 2024 - 8:08 am
They should not be allowed to share any data without specific clear acknowledgement by the purchaser or lessee.
David C March 14, 2024 - 1:15 pm
It is completely wrong. You can see in today's driving how people are using the apps offered by insurance to get a cheaper rate. These people are driving on 4 lane highways blocking the passing lane and creating grid lock because they will not move over for someone to pass. This is a serious situation with collecting data with out someone's permission. If the truth is known the car manufacturers are getting kickbacks from the insurance companies
Len Z. March 14, 2024 - 2:25 pm
The American public needs to wake-up ... "1984" is alive and well in today's world ...
J K March 15, 2024 - 8:29 am
This should be an obvious and up front “opt in” as should the use of any online data.
Mike H March 16, 2024 - 8:35 am
They are making money off of people and insurance companies do not care about you at all as for me my record has no tickets at all. I have a clear driving record for over 18 years and driving long distance I drive below the posted speed on the highway. And my rates have constantly raised for years and there is no reason for this to happen, none whatsoever. To read about how insurance companies bend you over to make you pay more is just down right evilness. People who work for insurance companies will always say it will help you drive better hahahahahaha so why do you hide it and insurance companies do not give you a free report ??? If it is going to help us ??? Because you people at insurance companies would still lie to the American people to charge more $$$.
Gail March 18, 2024 - 7:41 am
The data doesn’t tell the whole story. This is so wrong! My husband and I are retired and travel, by car, a lot. Our rates just keep going up. Since getting our DL at 16 we each have had ONE speeding ticket. No accidents. On our trips we often find ourselves on two lane roads. So if we come up on a vehicle, say a farm tractor, we pass it - legally, but do accelerate to get past quickly. When you travel in very congested cities there is a lot of sudden braking. A relative is a State Trooper, not in our State. And said, 9 you’re fine, 10 you’re mine. So yes, if weather conditions, traffic and road conditions are good we do drive about 5 miles over speed limit. And I had an Insurance Agent tell me 70% of drivers in our state do not have insurance! How does that happen? It is a law in every state I’m aware of. So we pay for them to.
Kenneth G. August 19, 2024 - 8:58 am
Sometimes you Have to break hard. Someone pulls out in front of you, a deer runs across the road, etc. Stopping before you hit something is good driving. Rapid acceleration is often needed when merging from a side road onto a major highway. Creep on with low speed and ???
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