Drivers in the US are being hit with eye-watering increases to their car insurance and it’s all down to data sharing.
Drivers have discovered their internet-connected cars are being mined for data that is being sold to insurance companies who are then using this data to justify increasing insurance policies.
One driver found data broker LexisNexis had a 130 page report on his driving behaviour including how many times he used the brakes, all without his permission.
US insurance companies have previously offered incentives for drivers to add tracking technology to their cars, but not surprisingly there has been little uptake.
Now it appears car companies are simply selling the data to insurance companies.
According to the New York Times, G.M., Honda, Kia and Hyundai, have started offering optional features in their connected-car apps that rate people’s driving. Some drivers may not realise that, if they turn on these features, the car companies then give information about how they drive to data brokers like LexisNexis.
Millions of US drivers are affected, with ‘permission’ to take the data hidden in the fine print using ‘murky’ language.
Many Australian cars carry similar technology, but there is no evidence car companies have been selling the data to insurance groups.
Do you think car companies should be more upfront about how your data is used. Should there be laws around it?
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