Many vehicles at today’s car dealerships feature services like Wi-Fi hotspots, in-car apps, and on-demand roadside assistance. They collect a wealth of driver data, but how is it used?
How Behavior Behind the Wheel Has Lasting Consequences
Recent reporting by the New York Times uncovered the extent of driver data tracking and the often downplayed uses of data associated with popular driver-assist and entertainment features. Before heading to car dealerships, drivers may want to know what they’re getting into.
General Motors Does Some Major Oversharing
GM’s connected service, OnStar Smart Driver, is a popular feature in all the auto group’s new vehicles. When drivers turn it on, OnStar Smart Driver claims to help boost safe driving skills. Not all vehicle owners realize that it does so by tracking and sharing their current driving habits.
The data GM gathers through OnStar gets shared with data-collection companies. In this case, the company is LexisNexis, but other automakers with similar systems use diverse data collectors.
LexisNexis then turns around and sells the information collected through OnStar to car insurance companies. This data sharing, in turn, can directly impact drivers’ insurance rates.
The problem here isn’t the collection of driver data or even its sale and use by insurance companies. The problem is that automakers collect user data without effectively ensuring that their customers are aware of the practice.
The Problem With Usage-Based Insurance Policies
Known as usage-based insurance, the practice of utilizing individual driver behavior metrics is becoming increasingly common. When modern drivers get into internet-connected cars, they may not realize that by connecting to the systems and services, they are agreeing to share data.
Think of it like reading the terms and conditions on a smartphone app. While it’s true that every smartphone user should be reading the small print, it’s also the case that companies should be transparent about how they plan to share private data.
Currently, California’s privacy regulator is investigating the matter. The idea is to determine how automakers collect and share data and whether drivers are adequately informed at car dealerships when they buy their cars and upon connecting for the first time.
How Can Drivers Protect Their Data at Car Dealerships and on the Road?
For drivers uninterested in usage-based insurance policies, opting out is usually a simple matter of not participating in driver monitoring programs like Smart Driver. The problem is that not all drivers know if they’re being tracked.
To find out how information about driving habits is being tracked and shared, car owners should check the privacy terms of their connected car service.
Alternatively, the Fair Credit Reporting Act requires LexisNexis and other data collection companies to produce consumer disclosure reports. Check them out to learn more about driver data sharing.
For those new to smart cars and driver monitoring, the best solution is to ask for help at car dealerships. A team member should be able to explain options and turn the services off for buyers before they drive away.
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