Automotive technology has given rise to internet-connected cars that offer a host of convenient features. However, this internet connectivity also enables automakers to gather vast amounts of driver data – a practice that is raising serious concerns about transparency and privacy. This article explores the issue in-depth, delving into how the data is collected, who it is shared with, and the potential implications for drivers.
Collection of Driver Data
Most new vehicles come equipped with internet services that support a range of popular features, from in-car apps to Wi-Fi hot spots. These “connected” cars also serve as a treasure trove of driver data – not only for automakers, but also for insurance companies. Highlighting the scale of data collection, the New York Times article focused on General Motors’ (GM) extensively tracked driver data and how it affected insurance rates.
Privacy Concerns and Lack of Transparency
Individuals unknowingly agreeing to share their data has become more common with internet-connected cars. Similar to the privacy concerns with smartphones and other personal devices, people often agree to terms and conditions without reading the fine print. While some argue it’s the responsibility of individuals to know what they are agreeing to, it is equally essential for companies to be transparent about their data-sharing practices.
Data Sharing with Insurance Companies
Specifically, the report mentions how automotive manufacturers such as GM are sharing customers’ driving behavior data with data-collection companies such as LexisNexis. LexisNexis, in turn, sells that information to auto insurance companies. For instance, a 2022 Chevy Bolt EV driver discovered his driving habits were shared with his insurer only after his insurance rates increased by 21 percent.
The Role of OnStar and Other Connected Services
GM’s venture into driver monitoring began with its OnStar connected services, specifically, the “Smart Driver” program. While customers willingly signed up for 90 days of monitoring, most OnStar users today might not realize that they’re still enrolled. In 2022, LexisNexis revealed it hosted data from over 10 million vehicles. It’s expected that more than 60 percent of automakers will integrate their data with LexisNexis by the end of 2022.
Ensuring Data Privacy
If motorists want to safeguard their privacy and know if their driving habits are being tracked and shared, they should consult the privacy terms of any connected car services they’re enrolled in. Additionally, customers can request a consumer disclosure report through LexisNexis, required by the Fair Credit Reporting Act. It’s essential for car owners to be aware of how their data is being used and take necessary steps to protect their privacy.
In the era of internet-connected vehicles, data privacy and transparency are of utmost importance. It’s crucial for automakers to strike a balance between offering innovative features and respecting the privacy of their customers. As such, better disclosure practices and robust privacy protections are key to fostering trust in connected vehicles and their growing capabilities.