Over an extended period, General Motors has been disclosing driver information to data intermediaries, who would subsequently vend that information to insurance firms, potentially impacting the insurance premiums of drivers. However, a recent report by the New York Times revealed that GM has terminated the sharing of data with two intermediaries.
The Drive contacted General Motors for a statement and will provide an update on this narrative once further details are obtained.
General Motors had been gathering driver details, such as speed, acceleration, braking, and mileage, through its OnStar Smart Driver function. Some drivers were reportedly oblivious to the data-gathering capabilities of this feature, which are meant to be elucidated at the dealership. Those who were aware were promised feedback and potentially digital awards for good driving conduct.
However, this information was shared with the data intermediaries LexisNexis Risk Solutions and Verisk, who would subsequently sell it to the insurance sector. Earlier this month, the New York Times reported a case where the owner of a Cadillac XT6 in Florida sued GM after witnessing a twofold rise in insurance premiums due to the data collected about their driving.
Cadillac XT6 Super Cruise. Cadillac
“The customer data from OnStar Smart Driver is no longer shared with LexisNexis or Verisk,” stated GM Spokesperson Malorie Lucich, as cited by the New York Times. “Earning and maintaining customer trust is a top priority for us, and we are actively reassessing our privacy procedures and policies.”
Automobile manufacturers amassing vehicle data from drivers is not a new practice, and some explicitly mention in their privacy policies the sharing of such data with third parties. A substantial portion of this data is currently utilized for semi-autonomous driving functionalities, as car makers leverage cloud-based data to enhance their capabilities. GM’s OnStar Smart Driver function contains similar disclaimers in its privacy policy agreement that customers agree to upon enrollment at the dealership. It’s also important to note that drivers have the option to discontinue their participation in the Smart Driver feature at any time.
It remains uncertain how General Motors will proceed with the utilization of driver data through the OnStar Smart Driver feature, but we can confirm that this data will no longer be shared with those two intermediaries.
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