GM is Now Facing a Lawsuit for Selling OnStar Driving Data to Insurance Companies and Data Brokers

By
Mitch Talley
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9
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GM is Now Facing a Lawsuit for Selling OnStar Driving Data to Insurance Companies and Data Brokers

Photo Credit: Chevrolet


Listen up, Corvette owners. General Motors is facing yet another lawsuit, this time over the alleged sharing of driving data without the customer’s approval.

The federal lawsuit, filed against GM and LexisNexis Risk Solutions by GM customer Romeo Chicco, alleges that the sharing of his driving habits in his 2021 Cadillac XT6 led to his rejection by seven auto insurance companies late last year. He finally discovered the reason: information about his speeding, hard braking and acceleration, and trip durations over the course of some 258 trips was being shared with insurance companies, leading to “significantly elevated” insurance premiums, Chicco alleges.

Chicco found out about the sharing of his data from a Liberty Mutual agent who told him he had been rejected because of information in a report from LexisNexis, which provides insurers with data on drivers’ moving violations, accident history, and prior insurance coverage.

Chicco contends the information was collected without his permission, but GM eventually told him he had enrolled in the OnStar Smart Driver program that tracks and rates driving habits and seatbelt use. Chicco denies signing up for the program, though he does admit to downloading the MyCadillac mobile app.

A recent New York Times report detailed how OnStar provides insurance companies with customer driving data through a data broker, with GM issuing this explanation last week:

“GM’s OnStar Smart Driver service is optional to customers, who give their consent three times before limited data is shared with an insurance carrier through a third party. Customer benefits include learning more about their safe driving behaviors or vehicle performance that, with their consent, may be used to obtain insurance quotes. Customers can also unenroll from Smart Driver at any time.”

GM claims the Smart Driver program has saved its customers millions of dollars in reduced car insurance rates but says that anyone with an issue over the program can start a live chat, push their blue OnStar button, or call 1-888-466-7827. More information is also available on the web at https://www.onstar.com/support/faq/smart-driver.


Source:
GM Authority

Related:
[VIDEO] Check Your MyChevrolet App to Opt Out of GM Sharing Your Driving Habits with Insurance Companies
[STOLEN] OnStar Leads Police to a C8 Corvette Stolen from a Charlotte Valet Service
Chevrolet Adds Mandatory $300 OnStar Subscription to the Price of the 2023 Corvette

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9 COMMENTS

  1. Typical BS! That f_____g program should default to NOT subscribing.

    If what gm says is true, that their terms and conditions, which one needs a high-priced lawyer to decipher, indicate that the tracking program is activated automatically, it’s undoubtedly buried on page 810 of 811 pages, which they know nobody is going to read! What idiot is his/her right mind would subscribe to such a privacy violating tracking program? No one, that’s who! If you want the monitoring program, opt in!

    Hopefully they’ll get a judge and jury with some common sense and fine the living heck out of gm! Hopefully, they’ll also be forced to pay the extravagant insurance premiums that their BS caused. Problem is that there will be those who will be refused auto coverage, forcing them off of the road and unable to get to their jobs. How does the judge or jury deal with that?

    Anyway, it’s bad enough that gm creates this problem for their customers but to profit from it is unconscionable!

    Montana Bob

  7. You also need to call them and tell them to disconnect from the system. I also disconnected my Lexus RC because they do the same. Now my remote start and vehicle information such as tire pressure doesn’t work. Bottom line is the black box in your car still records info and a LEO can get info with a sopena after an accident.

  8. That’s bullshit saying you have to consent 3 times before they will share, I have onstar on my 23 Equinox and after seeing these posts I went on to, My Chevrolet account and noticed that it was tracking me and I never gave any consent, it wasn’t easy to get to that page, but I was able to stop them from further tracking.

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