GM to pay $220 million to settle claims over sale of driver data
General Motors just agreed to pay $220 million to settle allegations.
The short version
- Thirty-five states said the automaker illegally sold drivers location data to insurers.
- The smart driver program enrolled millions of drivers between 2016 and 2024.
- Insurers used the data to set and sometimes raise monthly rates.
General Motors, the giant Detroit automaker, just agreed to pay $220 million to settle allegations that it illegally sold drivers private behavior and location data. The massive settlement, announced on Thursday according to Insurance Journal, resolves claims brought by the attorneys general of 35 US states and the District of Columbia.
Drivers who signed up for the automaker's Smart Driver program had their trips tracked between 2016 and its discontinuation in 2024. Oregon Attorney General Dan Rayfield said in a statement that people bought a car, not a tracking device. General Motors was accused of pitching the program to help improve safety while secretly passing data to brokers who sold it to insurers.
Companies such as Allstate, Progressive, and Berkshire Hathaway’s Geico, which is the massive auto insurer owned by Warren Buffett, used the telematics data to set and sometimes raise rates on everyday drivers. Many people who signed up were also enrolled in OnStar, the safety and navigation service built into their vehicles.
The new agreement also forces the automaker to limit the driving data it collects and get express consent before sharing anything in the future. For your monthly budget, check your auto insurance statement to see if your driving habits have been quietly tracked and used to hike your premium.
