Modern technology has revolutionized the way we drive, offering convenience and connectivity like never before. However, a recent revelation has shed light on a concerning trend: Automakers are partnering with data brokers to collect and share detailed driving data with insurance companies, potentially leading to significant spikes in auto insurance premiums.
One such case involves Kenn Dahl, a 65-year-old driver from Washington state, whose car insurance rates skyrocketed by 21% in 2022. Upon inquiry, Dahl discovered that his driving habits, cataloged in a 258-page report by LexisNexis, played a role in the rate hike. The report, requested by Dahl under the Fair Credit Reporting Act, revealed a staggering level of surveillance, documenting every trip taken in his Chevrolet Bolt over a six-month period, The New York Times reported.
In late 2023, Mozilla, the creator of the Firefox internet browser, unequivocally declared that “modern cars pose a serious privacy threat.” After studying 25 car brands, Mozilla assigned each of them its ominous “Privacy Not Included” warning label, Money Talk News reported.
“The gist is: they can collect super intimate information about you — from your medical information, your genetic information, to your ‘sex life’ (seriously), to how fast you drive, where you drive, and what songs you play in your car — in huge quantities. They then use it to invent more data about you through ‘inferences’ about things like your intelligence, abilities, and interests,” Mozilla’s report read.
The report, compiled by LexisNexis, detailed the start and end times of each trip, the distance traveled, and any instances of speeding, hard braking, or sharp accelerations.
While some drivers may willingly participate in usage-based insurance programs, allowing insurers to monitor their driving habits through dongles or smartphone apps, others may be unwittingly subjected to surveillance. Optional features in connected-car apps, offered by automakers like G.M., Honda, Kia, and Hyundai, provide drivers with ratings based on their driving performance. However, few drivers are aware that enabling these features grants car companies permission to share their driving data with data brokers like LexisNexis.
Policymakers have taken notice of these alarming practices, with California’s privacy regulator launching an investigation into automakers’ data collection practices. Senator Edward Markey of Massachusetts has also urged the Federal Trade Commission to investigate potential violations of consumer protection laws.
Photo by Louis de Gonzague Kubwimana: https://www.pexels.com/photo/woman-in-black-t-shirt-driving-a-car-9350305/