A New York Times exposé published today says car companies are selling detailed driving behavior data about their customers to third-party brokers, which could affect owners' insurance premiums. It raises serious questions about privacy in the Internet of Things.
Companies like General Motors Co., Honda Motor Co., and Kia Motors Co. are using data from connected cars to create driver behavioral profiles detailing how drivers often brake too hard. I am creating it. They tend to slow down or accelerate quickly when the stop light turns green.
The exposé featured a 65-year-old American man named Ken Dahl, who was shocked to learn that his insurance premiums had increased by 21% in 2022. He then considered other insurance companies, but they too offered what Dahl considered exorbitant rates. Later, through one of his agents, he discovered that the reason was in the data in his LexisNexis report.
LexisNexis is a New York City-based global data broker with a “Risk Solutions” division that provides data analytics for many industries, including automotive. The data typically focuses on accidents and various traffic violations, but the 258-page Consumer Disclosure Report Dahl received from the company reveals much more about the driving habits of the Chevrolet Bolt he relied on. It was stated that.
The 130-page data package featured all of Dahl's trips over the past six months (640 in total). It detailed the dates of these trips, start and end times, and how far they drove, explaining their driving habits regarding speeding, braking, and acceleration. It appears that Dahl may have driven recklessly at times, causing his insurance premiums to increase.
“I felt betrayed,” Dahl told the Times. “They're taking information that I didn't think would be shared and ruining our insurance.” Apparently they didn't realize that they somehow didn't read the small print about the possibility of being passed on to a broker. Mr. Dahl is just one of many people who have experienced higher insurance premiums due to data collection that they were unaware of, the Times found.
Some drivers didn't even have this feature turned on, but still experienced an increase in their insurance money after being tracked. When it happens, it almost never becomes apparent, according to the report. Other car companies that collect similar data include Mitsubishi Corporation and Subaru. LexisNexis boasts that it can provide insurance companies with “real-world driving behavior” from more than 10 million vehicles.
The good news is that anyone can download a LexisNexis Consumer Disclosure Report online, pursuant to the Fair Credit Reporting Act. Even so, you may not be able to escape from rising insurance premiums. It may be best to dig into your connected car's settings and turn off data sharing features. Drivers can also look for a “privacy request form” on the website of the company that manufactured their car and ask what data is being collected about their car.
Photo: John Matychuk/Unsplash
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