Is your car sharing your data with insurers?

By now, you've probably been invited by your car insurance company to join its optional usage-based telematics program, which tracks your driving habits and offers discounts if you score highly by driving safely and within preferred parameters. But you may not know that your car may already be sharing driving data with insurers without you ever opting in.

This controversial practice has captured headlines in recent years and is attracting increased attention from regulators and consumers.

Exhibit A: In 2025, the Texas Attorney General sued Allstate and its subsidiary Arity, alleging they collected and sold location and movement data from over 45 million trips without proper consent from drivers.

Exhibit B: The U.S. Federal Trade Commission (FTC) alleged that General Motors and OnStar collected and sold precise location and driving behavior data for millions of vehicles without clear notice and consent.

But both voluntary and involuntary data collection remain a serious concern for drivers who value their privacy, as TheZebra.com reports. Take the time to better understand how driving habit monitors collect your information and use it to set rates, how they factor in your driving score, what data exists and where to find it, and how to opt out and dispute inaccurate data.

The Data Your Car Is Already Sharing

Millions of drivers have had data brokers like LexisNexis and Verisk share detailed trip-by-trip data with insurers without their explicit consent, and many saw their rates rise as a result.

"Once drivers learned what GM was doing, the obvious next question was what other car companies and apps were doing with their data. That scrutiny is warranted, and it should push companies to stop burying consent in the fine print," says attorney Sean Chalaki. "Insurers can generally use your driving data if you agree to share it, but many drivers never realize they agreed to anything."

The data being shared can include your mileage, trip time, speed, braking, acceleration, cornering, phone activity, seat belt use, fault codes, crash events, and precise location, according to Shammi Thakur, research director for Vyansa Intelligence. This data can be linked to you through your vehicle identification number, insurance policy, mobile phone, or connected car account.

The primary benefit for you is more personalized pricing, as motorists who log fewer miles, avoid late-night travel, and drive lawfully and smoothly could pay less than a driver who has higher-risk patterns. The drawback is a lack of transparency: Drivers may not be aware that the data is being collected or used for insurance without their consent.

How Your Car Collects and Shares Data

There are now more than 470 million connected vehicles worldwide, including over 100 million in the United States. Here's a breakdown of the different ways today's cars collect and share data.

* Telematics devices. Over 93% of all new vehicles sold in North America include factory-installed embedded telematics. Many insurers also offer optional usage-based programs with a plug-in device or app, and those programs are required to disclose what they track.

* Your car's entertainment system. Connecting your phone via Bluetooth or USB gives your car access to contacts, call logs, texts, photos, and location data.

* Smartphone apps. Both Android and Apple have location tracking built in, and many apps request access to it as well.

* EDRs. Event data recorders log driving behavior during accidents: speed, airbag deployment, and similar data. Unlike the others, they don't transmit continuously or share data with insurers.

How Your Driving Score Gets Built

A driving score is essentially a grade given based on how you drive. It's created from trip data like how quickly you accelerate, how hard you brake, how often you speed, how many miles you cover, and how late at night you drive. This score can impact your rate at renewal, even if you've never filed a claim.

"Your driving data often goes through data brokers and other third parties before it reaches your insurer," Chalaki notes. "It starts with your car's connected services or an app on your phone, goes to the automaker or app company, and from there can be passed to a data analytics company. That company turns the data into a score or report, and carriers request it when you apply for coverage or come up for renewal."

Verisk and LexisNexis Risk Solutions are two of the largest data brokers in the industry, and both can be responsible for your driving score. Carriers already depend on both companies for information such as claims histories, so driving data fits naturally into their business. Verisk no longer accepts connected vehicle data directly from automakers or provides driving data reports to carriers, but LexisNexis continues to market telematics products to insurers using direct opt-in mobile tracking and official driving records.

How to Find Out What Data Is Out There

"'Why did my rate go up when I never filed a claim?' That's a question I hear a lot," says Rami Sneineh, owner/co-president of Insurance Navy Brokers in Palos Hills, Illinois. "There are ways to find out why, but it does take some legwork on your part."

He recommends checking your LexisNexis consumer disclosure report, a free copy of which you are entitled to every 12 months under the Fair Credit Reporting Act. This report can include details about ownership and real estate records, judgments, liens, bankruptcies, professional licenses, and past addresses. You can also request a separate FACT Act report (also called a C.L.U.E. report) from LexisNexis that details your insurance claims history.

Additionally, you can submit a FACT Act request to Verisk and receive a report about your auto and property claims history for no charge once a year.

How to Opt Out, Push Back, or Fix Errors

Truth is, you have more control over data collection than you may think. Here are proven tips to protect your privacy and fight back:

* Tweak your dashboard settings. Your car's infotainment screen may have setting submenus like Connectivity, Data Sharing, or Privacy. See if you can toggle off driving analytics, location history, and third-party data sharing directly from the dashboard if you prefer. But be aware that disabling these may turn off navigation updates or live traffic alerts.

* Insist on privacy from the manufacturer. "Many automakers have a privacy page on their website where you can limit how your data is used or shared," says Chalaki. "Just keep in mind that turning off some data collection may also turn off certain features in your car, so read what each setting does before you change it." Also, if you rely on a brand app for remote start or vehicle status, check the app's internal privacy settings. Toggle off what may be labeled as Smart Driver, Usage-Based Insurance, or Driving Insights.

* Think before you enroll in a telematics program. These programs can lead to real savings, but make sure you understand what data is being collected and how it could affect your rate before signing up.

* Dispute any inaccuracies. If you suspect your car has been reporting your driving, request your free consumer disclosure reports from LexisNexis and Verisk. If a record is wrong, dispute it in writing with the data company and send a copy to your insurer or agent.

* Hold your insurer accountable. If you've pushed to have your report corrected, ask your carrier to review your rate using the updated information.

* File a complaint. If your dispute doesn't resolve, file a complaint with the Consumer Financial Protection Bureau or your state's Department of Insurance.

* Get legal assistance. "If inaccurate data led to a significantly higher premium or a denied policy, it may be worth speaking with an attorney about your rights under the Fair Credit Reporting Act," Chalaki adds.

Is Any of This Worth Worrying About?

For many drivers, agreeing to share their driving data can result in genuine savings. For others, especially those whose rates have risen unexpectedly, understanding the data pipeline matters.

"Drivers should be informed, not alarmed. Voluntary programs that track your driving through an app or device can be a fair trade if you drive carefully," Chalaki says. "But the same data can also work against you. Depending on your insurer and state, risky habits like hard braking or late-night driving could shrink your discount or even raise your rate. Before you sign up, ask your insurer if the program could ever raise your premium."

Thakur believes drivers will have more control over data sharing in the future. "The driver will increasingly be able to see the data, choose the recipient, approve a specific purpose, and stop access," he says.

High-profile lawsuits like the ones against Allstate and GM/OnStar are pushing the industry toward clearer, more meaningful consent. But until consumer protection laws catch up, checking the fine print on what you agree to in your car, on your apps, and within your connected services is as smart as keeping your driving record clean.

FAQs

Is my car sharing data with my insurance company?

Yes, if you voluntarily signed up for a telematics program. But even if not, your vehicle may be sharing data with your carrier. To confirm, check the connected services or privacy settings on the dashboard screen in your car or in your automaker's mobile app. Look for anything related to driving insights, driver scores, or safe driving rewards. Also, check your automaker's privacy portal online to learn what data the company has collected about you and who it shares that data with. If in doubt, ask your carrier.

What is a LexisNexis driving report, and how do I get mine?

A LexisNexis driving report is a file that shows your driving history, including insurance claims, motor vehicle records, and possibly driving behavior data collected from apps or vehicles. You can request a no-charge copy once every 12 months under federal law by submitting a request on the LexisNexis Consumer Portal or calling 866-312-8076.

Does telematics actually lower my insurance rate?

Yes, participating in a telematics program can lower your car insurance premiums if you demonstrate safe driving habits, log low mileage, and avoid hard braking, rapid acceleration, and late-night driving. But if your telematics data reveal high-risk driving patterns, your premium could remain unchanged or even go up, depending on your state and insurer.

What is a driving score, and how does it affect my premium?

A driving score is a rating given by data brokers or carriers that evaluates your driving habits, including acceleration, speed, braking, mileage, and late-night driving, using telematics from smartphone apps or connected vehicles. A high score can decrease your insurance rate, while a low score indicates higher risk and could increase your rate or jeopardize your insurance discounts.

This story was produced by TheZebra.com and reviewed and distributed by Stacker.

Distributed by Newsbank, inc.