While you’ve got your eyes on the road, your car’s got eyes on you. Automakers like GM, Kia, and Subaru are collecting more data on drivers than ever — from time of departure/arrival to how hard you accelerate. And this rich data is finding its way into the hands of auto insurers, who use the information from third-party data brokers like LexisNexis or Verisk to set their rates.
- Drivers are often “stealth enrolled” in these data collection programs, with consent buried deep in the fine print of user agreements.
- You can request a free copy of your report from LexisNexis — and, in certain cases, apply to have your information removed if you’re a victim of identity theft.
Insurance costs soar: With repair expenses and claim severity on the rise, insurers have been struggling with profitability since the pandemic. Data collection enables profit-starved insurance companies to pinpoint risky drivers more accurately, potentially leading to higher premiums for those engaging in risky behaviors. As a result, car insurance costs have skyrocketed this year — climbing by 26% compared to 2023.
