Automakers sharing driving behavior data with insurance companies

SOURCE dnyuz.com
Automakers are sharing consumers' driving behavior data with insurance companies, leading to increased insurance rates based on factors like hard braking, hard acceleration, and speeding. The data is collected through connected car apps and features like OnStar Smart Driver without clear disclosure to drivers.

Key Points

  • Automakers are collecting detailed driving data through connected car apps and features like OnStar Smart Driver
  • Data brokers like LexisNexis and Verisk analyze this data and provide it to insurance companies for risk assessment
  • Drivers may not be aware of the data collection practices and how it impacts their insurance rates

Pros

  • Usage-based insurance can promote safer driving habits
  • Insurance rates may be personalized based on individual driving behaviors

Cons

  • Lack of clear disclosure to drivers about data collection practices
  • Increased insurance rates and potential privacy concerns for drivers