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Your Vehicle Might Be Informing Your Insurer About Your Driving Habits
Your Vehicle Might Be Informing Your Insurer About Your Driving Habits
Your Vehicle Might Be Informing Your Insurer About Your Driving Habits
Ramin Vandi
Ramin Vandi
March 13, 2024
March 13, 2024
Manufacturers of connected vehicles are transmitting considerably more information than consumers might anticipate, as highlighted in a recent New York Times report. This revelation has raised concerns, particularly because the data shared includes insights into customers' driving patterns, potentially with their insurance companies. For individuals driving cars equipped with built-in telematics systems—who prefer to keep their driving habits private—this information might be unsettling.
The Times identified instances of data sharing occurring primarily when customers willingly engage with various connected car features. However, the extent of understanding and agreement on what consumers are signing up for differs across automakers. Notably, companies like Tesla, which offers its own insurance services, either independently or through partnerships, ensure customers are informed about the monitoring of their driving behaviors. Similarly, some insurance providers propose electronic monitoring tools that connect to vehicles' universal on-board diagnostic (OBD) ports, present in all mainstream vehicles.
Nonetheless, the approach to data collection isn't always clear-cut. General Motors, for instance, was specifically mentioned for its ambiguous practices concerning data sharing. GM's optional OnStar Smart Driver service is designed to monitor and potentially improve customers' driving habits for safer and more economical driving but fails to clearly state that the collected data might be shared with entities like LexisNexis, accessible to insurance companies. Astonishingly, owners of high-performance GM vehicles reported insurance rate increases after using their cars on race tracks while subscribed to the service, possibly without their knowledge if the service was included in a dealership-purchased OnStar package.
Other car manufacturers have admitted to collaborating with third-party data collection agencies, albeit under more constrained and specific circumstances. For example, Subaru's Starlink service includes a provision for insurance tracking, but only with the customer's explicit consent for generating insurance quotations. In this case, it's just odometer data that's shared with third-party firms. Furthermore, brands such as Acura, Honda, Hyundai, Kia, and Mitsubishi offer optional driver score features entailing data collection and sharing with insurance databases, yet this is contingent upon customer opt-in.
This evolving landscape of automotive data sharing underscores the importance of consumers being fully informed and consenting to how their data is used—especially when it could influence insurance premiums or privacy. For those intrigued by the latest advancements in connected vehicle technology, considering to book a test drive could provide a firsthand experience of these features. However, potential buyers should inquire and understand the implications of data sharing and privacy policies associated with these technologically advanced vehicles before making a decision.
Manufacturers of connected vehicles are transmitting considerably more information than consumers might anticipate, as highlighted in a recent New York Times report. This revelation has raised concerns, particularly because the data shared includes insights into customers' driving patterns, potentially with their insurance companies. For individuals driving cars equipped with built-in telematics systems—who prefer to keep their driving habits private—this information might be unsettling.
The Times identified instances of data sharing occurring primarily when customers willingly engage with various connected car features. However, the extent of understanding and agreement on what consumers are signing up for differs across automakers. Notably, companies like Tesla, which offers its own insurance services, either independently or through partnerships, ensure customers are informed about the monitoring of their driving behaviors. Similarly, some insurance providers propose electronic monitoring tools that connect to vehicles' universal on-board diagnostic (OBD) ports, present in all mainstream vehicles.
Nonetheless, the approach to data collection isn't always clear-cut. General Motors, for instance, was specifically mentioned for its ambiguous practices concerning data sharing. GM's optional OnStar Smart Driver service is designed to monitor and potentially improve customers' driving habits for safer and more economical driving but fails to clearly state that the collected data might be shared with entities like LexisNexis, accessible to insurance companies. Astonishingly, owners of high-performance GM vehicles reported insurance rate increases after using their cars on race tracks while subscribed to the service, possibly without their knowledge if the service was included in a dealership-purchased OnStar package.
Other car manufacturers have admitted to collaborating with third-party data collection agencies, albeit under more constrained and specific circumstances. For example, Subaru's Starlink service includes a provision for insurance tracking, but only with the customer's explicit consent for generating insurance quotations. In this case, it's just odometer data that's shared with third-party firms. Furthermore, brands such as Acura, Honda, Hyundai, Kia, and Mitsubishi offer optional driver score features entailing data collection and sharing with insurance databases, yet this is contingent upon customer opt-in.
This evolving landscape of automotive data sharing underscores the importance of consumers being fully informed and consenting to how their data is used—especially when it could influence insurance premiums or privacy. For those intrigued by the latest advancements in connected vehicle technology, considering to book a test drive could provide a firsthand experience of these features. However, potential buyers should inquire and understand the implications of data sharing and privacy policies associated with these technologically advanced vehicles before making a decision.
Manufacturers of connected vehicles are transmitting considerably more information than consumers might anticipate, as highlighted in a recent New York Times report. This revelation has raised concerns, particularly because the data shared includes insights into customers' driving patterns, potentially with their insurance companies. For individuals driving cars equipped with built-in telematics systems—who prefer to keep their driving habits private—this information might be unsettling.
The Times identified instances of data sharing occurring primarily when customers willingly engage with various connected car features. However, the extent of understanding and agreement on what consumers are signing up for differs across automakers. Notably, companies like Tesla, which offers its own insurance services, either independently or through partnerships, ensure customers are informed about the monitoring of their driving behaviors. Similarly, some insurance providers propose electronic monitoring tools that connect to vehicles' universal on-board diagnostic (OBD) ports, present in all mainstream vehicles.
Nonetheless, the approach to data collection isn't always clear-cut. General Motors, for instance, was specifically mentioned for its ambiguous practices concerning data sharing. GM's optional OnStar Smart Driver service is designed to monitor and potentially improve customers' driving habits for safer and more economical driving but fails to clearly state that the collected data might be shared with entities like LexisNexis, accessible to insurance companies. Astonishingly, owners of high-performance GM vehicles reported insurance rate increases after using their cars on race tracks while subscribed to the service, possibly without their knowledge if the service was included in a dealership-purchased OnStar package.
Other car manufacturers have admitted to collaborating with third-party data collection agencies, albeit under more constrained and specific circumstances. For example, Subaru's Starlink service includes a provision for insurance tracking, but only with the customer's explicit consent for generating insurance quotations. In this case, it's just odometer data that's shared with third-party firms. Furthermore, brands such as Acura, Honda, Hyundai, Kia, and Mitsubishi offer optional driver score features entailing data collection and sharing with insurance databases, yet this is contingent upon customer opt-in.
This evolving landscape of automotive data sharing underscores the importance of consumers being fully informed and consenting to how their data is used—especially when it could influence insurance premiums or privacy. For those intrigued by the latest advancements in connected vehicle technology, considering to book a test drive could provide a firsthand experience of these features. However, potential buyers should inquire and understand the implications of data sharing and privacy policies associated with these technologically advanced vehicles before making a decision.
