More and more vehicles being manufactured today are connected to the internet. That’s a good thing, right? In some ways, that’s true – an internet connection can make software updates easier and send emergency services to the vehicle’s location after an accident. But as internet connections become more common, some drivers are learning about an unexpected downside: Insurance companies may have access to very detailed data about how they drive. This, in turn, may cause them to pay more for insurance.
That’s the gist of a blockbuster New York Times report by Kashmir Hill, a journalist who has written books on technology and privacy. It turns out that some automakers send their data to LexisNexis, which in turn sells it to insurance companies. This could mean that emergency braking situations can be tracked and recorded, and ultimately result in higher coverage at renewal time.
As Hill points out, some automakers are more aware than others of sharing driver data with third parties. Others don’t; Hill cited as an example her own experience participating in the Intelligent Driver program, which “provided driving insights on how to become a smarter, safer driver.” “I have a GM, a Chevy,” she wrote. “I completed the Smart Driver registration process; there were no warnings or significant disclosures that any third party could access my driving data.”
Privacy issues and what drivers think they are consenting to are a big theme in the program era report, but there is a broader issue looming. That is, how the industry as a whole gets this message out to drivers who may be affected. Hill noted that lawmakers at the state and federal level are concerned, and there are resources available to drivers themselves. But in an age of intricate terms of service and lengthy chains of third-party services, spelling out exactly which companies have access to which data is extremely complex.
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