Introduction
A Henry County woman recently discovered that her car was collecting and sharing her driving data with insurance companies, resulting in a significant increase in her insurance premiums. This incident highlights concerns over privacy and the use of telematics data by automakers and insurance companies.
Discovery of Data Collection
Tamika Clay, the woman at the center of the story, requested her Lexus Nexus consumer file and was shocked to find over 200 pages of data about her driving habits collected from the onboard computer in her Chevy Camaro. The data, tracked by the OnStar system, included details on acceleration, high-speed events, and hard braking incidents.
Insurance Impact
Clay decided to request the report after her insurance premiums skyrocketed by 80%. When she tried to shop around for better rates, an insurance broker denied her and suggested she check her Lexus Nexus records to understand why. The report revealed that General Motors had shared 603 entries of her driving data with data brokers.
Legal and Consumer Reactions
The situation mirrors a proposed class-action lawsuit filed just a day after Clay received her report. The lawsuit addresses similar concerns about the collection and sharing of driving data without proper consumer knowledge or consent.
Automaker Response
Following the public attention and lawsuit, General Motors announced it would sever ties with two data brokers, stating that as of March 20th, OnStar smart driver customer data would no longer be shared with Lexus Nexus or Versik. GM emphasized that customer trust is a priority and that they are actively evaluating their privacy processes and policies.
Privacy and Legal Concerns
Michael Brooks, executive director of the Center for Auto Safety, noted that current technology outpaces existing laws. There are no federal regulations mandating automakers to have privacy or cybersecurity protections for their vehicles.
Requesting Consumer Reports
Consumers like Clay can request their Lexus Nexus consumer disclosure report under the Fair Credit Reporting Act to see if their data is being collected. Lexus Nexus stated that telematics-based insurance programs can help improve driving and lower risks, and they offer channels for consumers to request and dispute their reports.
Conclusion
Clay’s experience underscores the growing concerns over vehicle data privacy and the need for stricter regulations to protect consumers. Drivers are encouraged to request their consumer disclosure reports to stay informed about data collection practices.
