A federal lawsuit claims that General Motors (GM) and LexisNexis Risk Solutions shared driving data without customer consent, resulting in higher insurance premiums for a GM customer. The lawsuit highlights concerns about the collection and sharing of personal data by automakers.
Lawsuit Alleges Chevrolet Shared Driving Data Without Consent
A federal lawsuit has been filed against General Motors (GM) and LexisNexis Risk Solutions, alleging that they shared driving data without customer consent. The lawsuit claims that this sharing of data resulted in higher insurance premiums for a GM customer. The case raises concerns about the collection and sharing of personal data by automakers.
( Credit to: Corvetteblogger )
Customer Rejected by Auto Insurance Companies
The lawsuit was initiated by a GM customer, Romeo Chicco, who discovered that his applications for auto insurance were rejected by seven different insurance companies. It was revealed that the rejections were based on driving data shared by GM and LexisNexis, which included information on Chicco’s speeding, hard braking, acceleration, and trip durations. This data led to significantly higher insurance premiums for Chicco.
Chicco argues that his driving data was collected without his permission. Although GM claims that Chicco had enrolled in the optional OnStar Smart Driver program, Chicco denies signing up for the program but admits to downloading the MyCadillac mobile app.
GM’s OnStar Smart Driver Program
The OnStar Smart Driver program is an optional service offered by GM that tracks and rates driving habits and seatbelt usage. GM states that customer consent is required before limited data is shared with insurance carriers through a third party. The program aims to help customers understand their safe driving behaviors and potentially obtain insurance quotes based on their driving habits.
According to GM, the Smart Driver program has saved its customers millions of dollars in reduced car insurance rates. However, for those with concerns about the program, GM provides various avenues for assistance, including live chat, the blue OnStar button, or a dedicated phone line.
Debate on Personal Data Collection by Automakers
This lawsuit highlights the ongoing debate surrounding the collection and sharing of personal data by automakers. While GM asserts the benefits of the Smart Driver program, it is crucial for customers to be aware of their options and exercise caution when enrolling in such services. Transparency and consent are key factors in ensuring the responsible use of personal data in the automotive industry.
Conclusion
The lawsuit against GM and LexisNexis alleges that the sharing of driving data without consent led to increased insurance premiums for a customer. As the case unfolds, it underscores the importance of transparency and consent in the collection and use of personal data in the automotive industry.
