GM Stops Sharing Driver Behavior With Data Brokers And Insurers After Lawsuit

In the wake of a lawsuit and a bombshell investigation by The New York Times, revealing the unsettling practice of numerous automakers sharing customers' driving data with the insurance industry, thus resulting in increased premiums for certain drivers, General Motors has announced that it is terminating its relationship with data brokers LexisNexis and Verisk. The class-action lawsuit was filed on March 13 by Romeo Chicco of Florida against GM, OnStar, and LexisNexis.

On March 11th, the New York Times published a story about a man who said he felt betrayed by GM. The manufacturer had sent data about his driving to data broker LexisNexis who in turn created a risk report. That risk report became a premium-increasing factor when the man, Kenn Dahl, went insurance shopping. According to the NYT, Chico alleges that GM and OnStar violated privacy and consumer protection laws.

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