
Kenn Dahl has always been a cautious driver, owning a software company near Seattle, driving a leased Chevrolet Bolt without any accidents on his record. However, in 2022, he was shocked to find his car insurance rates had increased by 21 percent. After receiving quotes from other agencies, he discovered that his LexisNexis report was a contributing factor.
LexisNexis, a data broker based in New York, provided Mr. Dahl with a 258-page “consumer disclosure report” detailing every trip he and his wife had taken in the Bolt over the past six months. The report included dates, times, distances, and driving behaviors such as speeding, hard braking, and sharp accelerations, all provided by General Motors, the Chevy Bolt’s manufacturer.
This data was then used by LexisNexis to generate risk scores for insurance companies to offer personalized coverage. Eight insurance companies had requested information about Mr. Dahl in the previous month, leading him to feel betrayed and concerned about his privacy.
While some drivers opt-in to monitoring programs like OnStar Smart Driver, others have found themselves unknowingly enrolled. Car companies like General Motors are collecting driving data from internet-connected vehicles and sharing it with data brokers for use by the insurance industry without clear consent from drivers.
Concerns have been raised by policymakers and consumers alike about the collection of sensitive information from vehicles. California’s privacy regulator is investigating data collection practices by automakers, and Senator Edward Markey has called for an investigation by the Federal Trade Commission.
The sharing of driving data without clear disclosure to drivers raises ethical and privacy concerns. Consumers like Mr. Dahl and others find themselves caught in the crossfire between car manufacturers, data brokers, and insurance companies, with their driving habits and insurance rates under scrutiny without their full knowledge or consent.