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After an extended period of sharing driver data with third-party brokers for resale to insurance companies, potentially influencing policy premiums, General Motors has officially halted this practice with two data brokers. This development was covered in a recent article by the NY Times.
The Drive has reached out to GM seeking further comments and will provide updates to this story as they become available.
The OnStar Smart Driver system employed by GM collected various forms of driver data, including metrics such as acceleration, speed, braking, and mileage. A number of drivers were reportedly not fully aware of the data collection capabilities of this feature, which is meant to be clarified when purchasing the vehicle. Those who were aware were incentivized with feedback and digital commendations for safe driving behavior.
GM previously shared the collected data with LexisNexis Risk Solutions and Verisk Analytics, two companies that would then provide it to insurance agencies. A lawsuit was initiated against GM by a Cadillac XT6 owner from Florida, who experienced a doubling of his insurance premium due to the data gathered about his driving habits, according to earlier coverage from the NY Times.
“OnStar Smart Driver customer data is no longer being shared with LexisNexis or Verisk,” GM spokesperson Malorie Lucich was quoted in the NY Times. “Ensuring customer trust is our prime concern, and we are rigorously reviewing our privacy processes and policies.”
Vehicle data collection by car manufacturers is a common practice, with some companies openly acknowledging in their privacy policies that such data may be shared with outside entities. This information increasingly contributes to the development of semi-autonomous driving technologies, as manufacturers utilize cloud-based data for enhancements. The OnStar Smart Driver feature includes terms in its privacy policy concerning this data handling, to which customers agree upon at the dealership. Note, however, that users can opt-out of the Smart Driver feature at any time they choose.
As of now, the specifics of how GM will continue utilizing driver data through the OnStar Smart Driver feature remain unspecified, but the company has made it clear that the sharing of this data with LexisNexis and Verisk has been discontinued.
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FAQs
What kind of data was General Motors collecting?
GM collected data through the OnStar Smart Driver feature which included acceleration, vehicle speed, braking, and mileage.
Were drivers aware of the data collection?
Some drivers were, but many reportedly did not know about the feature’s data collection capabilities. The feature is supposed to be explained at the dealership.
To whom was GM selling the collected driver data?
GM was sharing the data with data brokers LexisNexis Risk Solutions and Verisk Analytics, who would then sell it to the insurance industry.
Can drivers opt-out of data collection?
Yes, drivers can unenroll from the Smart Driver feature at any time.
Conclusion
General Motors’ decision to stop sharing driver data with LexisNexis and Verisk marks a significant turning point in the ongoing conversation about data privacy and user consent in the automotive industry. While OnStar Smart Driver provided benefits to customers in terms of feedback and rewards for good driving behavior, the implications for insurance rates and personal privacy have raised concerns. Moving forward, GM’s commitment to re-evaluate its privacy processes could set a new standard for transparency and customer trust in how automotive manufacturers handle sensitive data.
