GM Halts Controversial Driving Data Sharing Practice

General Motors (NYSE: GM) announced on Friday that it has stopped sharing details about how customers drive its vehicles with two data brokers, LexisNexis Risk Solutions and Verisk. These companies had been creating risk profiles for the insurance industry based on the data provided by GM.

The decision comes after a recent New York Times report revealed that GM had been sharing data about drivers’ mileage, braking, acceleration, and speed with the insurance industry for years. This data was collected through the OnStar Smart Driver feature in GM’s internet-connected cars, which some drivers claimed they were enrolled in unknowingly.

According to the report, some drivers experienced increased insurance rates as a result of the data captured and shared with the brokers, who then sold it to insurance companies.

One Florida man, Romeo Chicco, filed a class-action complaint against GM, OnStar, and LexisNexis this month after his insurance rates nearly doubled due to the collected driving data from his Cadillac, according to a separate report by The Times.

GM spokeswoman Malorie Lucich said in an emailed statement that customer trust is a priority, and the company is “actively evaluating our privacy processes and policies.”

As of 2022, more than eight million vehicles were included in the Smart Driver program, which, also according to The Times, generated annual revenue in the low millions of dollars for GM.


Information for this story was found via The New York Times, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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