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General Motors Hits the Brakes on Sharing Driving Data Amid Lawsuit Some GM drivers didn't know their data was being shared — until their insurance rates went up.

By Sherin Shibu

Key Takeaways

  • General Motors and other carmakers are under fire for sharing detailed driving information with data brokers without customers' knowledge, and in turn causing insurance rates to rise.
  • GM has partnered with with global data brokers since 2015.
  • A GM spokesperson said the practice has ended.
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General Motors (GM) said on Friday that it has stopped sharing driving behavior data with two key data brokers, according to the New York Times.

Earlier this month, the outlet reported that GM had collected data from its drivers for years under a feedback feature called OnStar Smart Driver, which some drivers said they were unknowingly enrolled in.

GM shared detailed driving information, including when drivers hard braked and hard accelerated, with two global data brokers: LexisNexis and Verisk.

These data firms then sold the data to car insurance companies, some of which used the reports to raise drivers' insurance rates.

"OnStar Smart Driver customer data is no longer being shared with LexisNexis or Verisk," G.M. spokeswoman, Malorie Lucich, told the NYTimes in an emailed statement. "Customer trust is a priority for us, and we are actively evaluating our privacy processes and policies."

Related: Is Your Car Sharing Your Driving Habits With Data Brokers?

Customer Romeo Chicco filed a class action lawsuit against GM and LexisNexis on March 18, after the NYTimes published its report. Chicco claimed that he never enrolled in OnStar Smart Driver and that the data sharing forced him to pay significantly higher insurance rates.

Chicco alleged that GM and OnStar reported his driving behavior to LexisNexis without his consent, and in a way that was "decontextualized" or separated from the driving conditions that he might have experienced.

GM has partnered with LexisNexis since 2019 and with Verisk since 2015.

Sherin Shibu

Entrepreneur Staff

News Reporter

Sherin Shibu is a business news reporter at Entrepreneur.com. She previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. Her areas of coverage encompass tech, business, strategy, finance, and even space. She is a Columbia University graduate.

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