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CARS ARE COVERTLY TATTLING TO INSURANCE COMPANIES ABOUT YOUR BAD DRIVING

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A New York Times investigation found that some car manufacturers are sharing drivers’ data with insurance companies, sometimes without their consent.

A New York Times reports that some car manufacturers share drivers’ data with insurance companies, sometimes without their knowledge, prompting another round of concerns about privacy and the auto industry.

Several manufacturers, including General Motors, Honda, Kia, and Hyundai, allow drivers with internet-connected vehicles to opt in to programs that monitor their driving. The carmakers claim they have permission from drivers to collect data, but the NYT notes it’s often through the fine print that few read. And even when drivers knowingly opt in to data collection, they don’t always realize their data is being shared with a third party.

  • The NYT reported the data—which includes instances of speeding, hard braking, and sudden accelerations—gets transferred to data brokers, like LexisNexis, which then sell that information to insurance providers.
  • Some drivers found their insurance rates doubled due to their LexisNexis report.

A legal expert told the NYT that stealthy data sharing doesn’t even do much to boost safety, since car owners don’t realize their driving behavior could determine insurance premiums.

It’s got the government’s attention. Last year, a report by the nonprofit Mozilla Foundation found that cars were the worst product for privacy—and since then it’s been top of mind for policymakers. The California Privacy Protection Agency is investigating privacy practices for internet-connected cars, and Massachusetts Sen. Edward Markey urged the FTC to look into manufacturers’ data practices last month.

Cassandra Cassidy

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