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General Motors Ceases Sharing Driver Behavior Data with Data Brokers

 


General Motors announced on Friday that it ceased sharing information on driving habits of its customers with two data brokers involved in creating risk assessments for insurance companies.

This decision came in response to a recent report by The New York Times revealing that General Motors had been sharing data on mileage, braking, acceleration, and speed of drivers with the insurance industry for several years. These data were collected through the OnStar Smart Driver feature in General Motors' internet-connected cars, often without the drivers' knowledge. This feature gathered driving data and offered feedback and digital rewards for safe driving.

Some drivers reported that their insurance premiums increased due to the shared data, which General Motors provided to two brokers, LexisNexis Risk Solutions and Verisk, who then sold it to insurance firms.

A spokesperson for General Motors, Malorie Lucich, stated via email that since Wednesday, they have halted the sharing of OnStar Smart Driver customer data with LexisNexis or Verisk. Lucich emphasized the company's commitment to customer trust and stated that they are actively reviewing their privacy procedures and policies.

In response to the situation, Romeo Chicco from Florida, whose insurance rates nearly doubled after his Cadillac's driving data was collected, filed a complaint seeking class-action status against General Motors, OnStar, and LexisNexis.

An internal document, examined by The New York Times, indicated that as of 2022, over eight million vehicles were enrolled in the Smart Driver program. A company insider revealed that the program's annual revenue was in the low millions of dollars.