Certain Automakers Reportedly Share Driving Data With Data Brokers and Insurance Companies – Class Action Investigation

Ahdoot & Wolfson is investigating reports that automakers may share consumers’ driving behavior with data-collection companies, which in turn sell that information to auto insurance companies.

According to a recent New York Times investigation and other public reports, certain automakers — such as General Motors, Honda, Kia, Subaru, Mitsubishi, and Hyundai –– may be tracking drivers’ behavior through internet-connected vehicles, and sharing it with data brokers such as LexisNexis and Verisk, which create “consumer disclosure reports” on individuals that insurance companies can access. The tracked information varies, but can include mileage, braking habits, sharp breaking, acceleration patterns, speed and odometer readings, driving distances, driving stop and start times, and other data points. The automakers then reportedly sell this data to data brokers like to LexisNexis Risk Solutions and Verisk which, in turn, analyze this data, create a driver “risk score,” and provide that score to insurance companies. These practices reportedly have led to consumers experiencing drastic increases in auto insurance premiums and denial of insurance altogether. 

According to the New York Times investigation, the automakers alleged to be engaging in this conduct may fail to disclose that they are tracking the data and transmitting it to third parties. Ahdoot & Wolfson is investigating whether these alleged data tracking and sharing practices may violate state and federal laws, including privacy and consumer protection laws.

If you have purchased a General Motors, Honda, Kia, Subaru, Mitsubishi, or Hyundai vehicle in the last 5 years, and use your vehicle’s connected services (sometimes called “telematics”), you may have been impacted by the reported data sharing practices discussed above. Please fill out the form below, and one of our attorneys promptly will contact you for a free consultation.