Drivers who own cars from top manufacturers such as General Motors, Ford and Honda are experiencing a rise as high as 50% in their auto insurance rates.
Unbeknownst to the car owners, these companies have been transmitting driving behavior data directly to insurance issuers, according to a new report.
For instance, Seattle businessman Kenn Dahl, 65, found himself caught in this predicament when his auto insurance costs skyrocketed by 21% last year, The New York Times reported. The significant increase can be traced to the data collected from GM’s OnStar Smart Driver system in his Chevy Bolt, which monitors driver behavior.
“I was taken aback when my insurance agent linked the hike in rates to the detailed analytics gathered on my driving,” Mr. Dahl told The Times. “It felt like a betrayal. They’re taking information that I didn’t realize was going to be shared and screwing with our insurance.”
LexisNexis, a data analytics firm, produced a 258-page dossier spanning six months of driving activities for Mr. Dahl and his wife. This report logged each trip’s start and end, mileage covered, and probed into speed fluctuations, abrupt stops and rapid accelerations. One trip in June particularly stood out within the report. The 18-minute drive covering 7.33 miles was marred by two instances of rapid acceleration and a pair of sudden braking incidents.
Through the OnStar Smart Driver system, details such as total miles and driving conduct are recorded, contributing to the profile compiled by LexisNexis. This revelation has alerted drivers to privacy implications and financial repercussions.
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