PriyaPatel
TLDR:
Car owners may not be aware that their driving habits are being shared with insurance companies through connected cars, leading to potential increases in insurance rates. This data is often collected through telematics and shared without the driver’s knowledge, raising concerns about privacy and transparency.
Article Summary:
Modern vehicles with connected car features are sharing owners’ driving habits with insurance companies through built-in telematics, often without the owners realizing it. This data includes information such as trip details, driving behavior (such as speeding and hard braking), and other statistics that insurers use to adjust rates.
Some car owners have reported increases in insurance rates without understanding why, only to later discover that their driving statistics were being sold to insurers. General Motors was mentioned as a specific example, where driver data was shared with data brokers like LexisNexis and Verisk without the driver’s explicit consent.
While voluntary programs exist where drivers can share data to potentially lower rates, some connected cars automatically share this information without clear disclosure. Certain automakers offer “driving improvement” features that rate driving behaviors and share the data with data brokers, leading some users to be enrolled in these programs without their knowledge.
Concerns have been raised about the lack of transparency surrounding data collection and sharing by connected cars, with some drivers being enrolled in behavior-based insurance programs without their understanding. It is important for car owners to be aware of what data their vehicles are capable of collecting and sharing, as well as to understand the implications for their insurance rates.
In related news, President Biden ordered an investigation into potential security risks posed by Chinese connected vehicles, particularly EVs. This highlights the growing concerns around data privacy and security in the automotive industry.
