US regulators and attorneys general challenge automotive data privacy

Automakers and insurance companies are facing increased scrutiny over the collection and sale of driver data without explicit consent. While many drivers opt into usage-based telematics programs to receive discounts, reports indicate that significant amounts of location and movement data are being shared through involuntary means.

In 2025, the Texas Attorney General filed a lawsuit against Allstate and its subsidiary, Arity, alleging the unauthorized collection and sale of data from over 45 million trips. Additionally, the U.S. Federal Trade Commission (FTC) has alleged that General Motors and OnStar collected and sold precise location and driving behavior data for millions of vehicles without providing clear notice to consumers.

Data brokers, including LexisNexis and Verisk, have also been identified as entities that share detailed trip-by-trip information with insurers. This data, which can include mileage, speed, braking, and acceleration, is often used to set insurance rates, sometimes resulting in increased costs for drivers who did not realize their information was being shared.