General Motors has announced that it will no longer disclose details about how people drive their vehicles in pairs estate agents of data that created risk profiles for the insurance industry.
This decision came after a New York Times report revealed this GM had shared data about drivers’ miles traveled, braking, acceleration and speed. Worked in the insurance industry for years.
The drivers were registered, sometimes without knowing it OnStar Smart Driver, a feature in GM’s internet-connected cars that collected data on how the car was driven and promised digital badges for safe driving.
Some drivers said their insurance premiums increased because of the data collected. that GM shared with two estate agents, LexisNexis Risk Solutions and Verisk. These companies then sold the data to insurance companies.
Since Wednesday, “OnStar Smart Driver customer data will no longer be shared with LexisNexis or Verisk”GM spokeswoman Malorie Lucich said in an emailed statement. “Our customers’ trust is our priority and we are actively evaluating our data protection processes and policies.”
Romeo Chicco, a Florida man whose insurance premiums nearly doubled after his Cadillac collected his driving records, filed a class-action lawsuit this month against GM, OnStar and LexisNexis.
Until 2022, More than eight million vehicles were included in Smart Driver. An official familiar with the program said Smart Driver’s annual revenue for the company is in the millions.
This move by GM underscores the growing importance of consumer privacy and the need for greater transparency in how their driving data is used and shared. The automotive industry faces significant challenges in balancing technological innovation with protecting consumer privacy.