Some call it an invasion of privacy. The New York Times reports that automakers are in bed with car insurance companies, sending over data on their customers’ driving habits, which is raising insurance rates.
The manufacturers listed in the report were General Motors and Ford.
Newer cars have internet access, and the car makers share the driving information with data brokers such as LexisNexis and Verisk.
These brokers then turn around and produce what is called a “consumer disclosure report” that is shared with insurance companies.
Supposedly, the data doesn’t give information on the locations the driver went to; instead, it details the distances of trips and driving behavior.
The behavior includes hard braking, hard accelerating, and speeding. Then, the insurance companies will use this information to raise or cancel a client’s auto coverage.
The manufacturers and third-party groups defend their actions, claiming they don’t harbor the information without customers’ consent. But the Times points out that most drivers have no idea that their driving data is being collected.
Software company Mozilla released a report last year warning about drivers’ “privacy concerns” about car makers sharing their information with insurance companies and police agencies.
However, car buyers have been unaware of who is monitoring their driving behavior because insurance companies have induced consumers to install apps allowing them to access GPS and roadside assistance.
Other automakers, such as Honda, Kia, and Hyundai, have been featuring driving apps that grade how a person is driving.
“GM’s OnStar Smart Driver service is optional to customers.” “Customer benefits include learning more about their safe driving behaviors or vehicle performance that, with their consent, may be used to obtain insurance quotes. Customers can also unenroll from Smart Driver at any time,” said G.M. spokeswoman, Malorie Lucich
“Modern cars are surveillance machines on wheels souped up with sensors, radars, cameras, telematics, and apps that can detect everything we do inside—even where and when we do it,” the Times noted.
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