Automakers are selling your driving data to insurers
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.
