Your vehicle might be capturing your driving habits, such as speed and abrupt braking, and subsequently transmitting this information to a central database.

Modern vehicles are no longer just modes of transportation; they are evolving into sophisticated machines equipped with microphones, cameras, and sensors that relay signals through complex computer systems. However, the convenience of these features comes with a significant caveat, as highlighted by the Mozilla Foundation in a report from September 2023. According to the report, every interaction with your car generates a minute record of your activities, raising concerns about privacy and data security.

‘Discovered a staggering 603 records’

One woman’s experience sheds light on these worries. Temieka Clay, an Atlanta resident, found herself perplexed when she received a denial letter while applying for new car insurance. The letter directed her to review her LexisNexis report for further insights. To her astonishment, Clay discovered a staggering 603 records from the OnStar computer system in her Chevy Camaro.

General Motors (GM) had been sharing her car’s data with data brokers, unbeknownst to Clay. The data collected included details on acceleration events, high-speed events, and hard braking events. “Your car is essentially turning into a computer and collecting data on you as you drive. And that data is worth something, particularly to your insurance company,” remarked Michael Brooks, the executive director of the Center for Auto Safety.

‘80% increase in her insurance’

Clay’s suspicions were confirmed when she noticed an 80% increase in her insurance premiums, despite having a clean driving record. A proposed class-action lawsuit filed in federal court in Florida echoed Clay’s concerns, alleging that GM’s data-sharing practices unfairly impacted insurance premiums.

Following public outcry and legal action, GM announced the termination of its partnerships with two data brokers. A GM spokesperson emphasized the company’s commitment to customer trust and privacy, stating, “Customer trust is a priority for us, and we are actively evaluating our privacy processes and policies.”

However, the lack of comprehensive laws and regulations regarding data privacy in the automotive industry remains a pressing issue. According to Brooks, there are currently no federal mandates requiring automakers to implement privacy protections for vehicle owners or cybersecurity measures for their vehicles.

Clay’s experience serves as a wake-up call for consumers to exercise their rights under the Fair Credit Reporting Act by requesting their LexisNexis consumer disclosure reports. The revelation that vehicles are capable of gathering and transmitting sensitive driving habits data underscores the urgent need for stronger privacy safeguards.

In response to inquiries, LexisNexis Risk Services highlighted the increasing complexity of auto insurance rates, citing factors such as rising claim frequency, escalating repair costs, and risky driving behaviors like speeding. Telematics-based insurance programs, they argue, offer consumers an opportunity to improve their driving habits and mitigate risk.

‘Monitoring over 10 million vehicles’

The issue extends beyond GM, with other major players in the automotive and insurance industries also engaging in data collection practices. In 2022, LexisNexis Risk Services disclosed that they were monitoring over 10 million vehicles and had contracts with five of the ten largest auto insurers.