A new report sheds light on the way in which GM’s OnStar service provides insurance companies with customer driving data through a data broker, affecting customers’ insurance premiums. The practice is largely unknown to consumers, with consent often buried in fine print and obscure privacy policies. GM isn’t alone in this practice, and it’s seen as a growing trend among major automakers, including Ford, Honda, Hyundai, and others.
According to a recent report from the New York Times, Kenn Dahl, a 65-year-old software company owner from Seattle, discovered this the hard way after insurance premiums for his Chevy Bolt EV unexpectedly spiked 21 percent. After checking quotes from other insurance companies, Dahl was told that his LexisNexis report was a factor.
LexisNexis is a global data broker that provides auto insurance companies with information on things like car accidents and tickets. Dahl requested a detailed consumer disclosure report, which, to his surprise, contained an extensive breakdown on where his Bolt was driven over the course of the last six months. The report included dates for 640 individual trips, including the start and end times, distance driven, instances of speeding, sharp acceleration, and hard braking. The report did not include location data.
GM Authority reached out to General Motors for more information on the matter. A GM spokesperson provided the following statement and details.
“GM’s OnStar Smart Driver service is optional to customers, who give their consent three times before limited data is shared with an insurance carrier through a third party. Customer benefits include learning more about their safe driving behaviors or vehicle performance that, with their consent, may be used to obtain insurance quotes. Customers can also unenroll from Smart Driver at any time.”
- The driving behavior insights can only be shared when a customer explicitly consents through an insurance carrier to have the data shared. This is after two other consents as well, one at the time of accepting privacy terms when enrolling in OnStar, and the other at the time of consenting to and enrolling in Smart Driver.
- The goal of these programs is always to reduce the total cost of insurance, and millions of GM customers have saved on their car insurance because of such services.
- If a customer has an issue with Smart Driver, they can start a live chat, push their blue OnStar button, or call at 1.888.466.7827.
- Customers can also find more information at: https://www.onstar.com/support/faq/smart-driver
Automakers and insurance companies have encouraged consumers to use apps and other devices to monitor their driving behavior for access to insurance discounts, but many consumers are reluctant to participate. Instead, some automakers have begun to collect data directly from web-connected vehicles without explicit or well-understood consent from customers. The New York Times report indicates that some GM vehicles were tracked even when the OnStar Smart Driver features was explicitly turned off. According to OnStar, Smart Driver is intended to help the consumer “become a better driver” by tracking and rating seatbelt use and driving habits, offering a gamified approach to driver safety.
The California Privacy Protection Agency is currently investigating automaker’s data collection practices. Meanwhile, Massachusetts Senator Edward Markey has encouraged the Federal Trade Commission to investigate the practice as well.
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Comments
Just turned off the Smart Driver insights using the myCadillac app because of this story. Thanks for sharing.
I just checked my data on MyChevrolet before turning it off. When I unload the car before putting it in the garage, driving it in the garage counts as journeys without wearing a seat belt.
So glad I never buy OnStar…….after the demo period I just let it go…..
It is now included in the sticker price, so if you have a new vehicle, you have it for three years and you have the added bonus of reporting your driving habits to your insurance company so they can screw you even worse than they already are… I don’t know which year they started it, but it been a few now.
Well, even though it’s buried in “fine print” it’s there so the responsibility lies with the person agreeing to the terms they most likely did not read. Can’t complain when you just hand them your permissions without reading what you’re giving them access to….freely. Can’t blame the car company or the insurance company. It’s no different then people complaining that their bigoted/racist/sexist/crude post was removed and crying “freedom of speech” when they agreed to the terms of the internet forum or app they signed up to use. By joining FB/Twitter/Instagram/GMAuthority, etc., you agree to abide by their terms of conduct so if you get called out for your shiz, you can’t cry when it gets deleted just like you can’t get mad at the insurance company for raising your rates when you drive like a tool and willingly give them access to HOW you drive. That’s on you.
“Well, even though it’s buried in ‘fine print’ it’s there so the responsibility lies with the person agreeing to the terms they most likely did not read.”
Wonder how many cell phones are collecting and sharing driving data, consented to in the fine print.
All of them, I reckon.
My son is alive today solely because Onstar alerted the authorities of his accident. First responders showed up and drove by the scene three times before they finally spotted him only 50 feet off the road in the woods. He would’ve died there without Onstar . Who cares if my insurance knows how I drive ( by the way, just normal due diligence and routine privacy practices will prevent your insurance carrier from getting this info) I have a son today because of Onstar. It’s around $200 a year, you probably spend more a year on tips at Starbucks or Dunkin.
Wasn’t bashing OnStar, just to let ya know.
We have Life360 on our phones.
Also, if people drive “bad enough” that their insurance companies raise their rates….GOOD.
Huge difference between sharp turns and dangerous driving. I know some granny’s that average 35mpg who are way bigger road hazards than an Xfinity driver going 10 over the speed limit, or a GT driver enjoying some country back roads. That’s the reason I do not use any insurance discount app. I’ve never been in a wreck, only had 1 ticket in high school, and am a safer driver than most of those people who use those apps. None of use want to be penalized for going 3mph over. Sounds like it’s time for this guy to change insurance companies.
I know what you mean. A friend drives like grandpa since I’ve known him, 55 in the right lane of the freeway with a limit of 65 completely oblivious to what is going on is just one example. I’ve ridden with him twice that nearly had bad accidents. I gave up, now I just drive myself and always decline rides from him.
Well at least he is in the right lane. Here in Arizona, they prefer the left lane.
Curious has anyone requested this LexisNexis report and how did you do it? It would be nice to see what the stazi thinks of me.
Just have.
Anyone gonna mention that the guy’s name is Kenn Dahl!? KENN DAHL!?!?!?
But is he Kenough?
What the NYT article, this GMA article and the posts here responding to the article all seem to ignore or at best gloss over, is that apparently the drivers being tracked by OnStar are ones who’ve signed up for the OnStar Smart Driver program.
Smart Driver is an optional nanny program just like those offered by insurance companies like Progressive, that are designed to monitor your driving habits in exchange for possibly reducing your insurance rates. You have to go into the OnStar app , sign up for Smart Driver, and agree to allow OnStar to track your driving habits. It’s not something GM or OnStar do automatically, and it’s real easy to find out if it’s on because the MyChevrolet, MyGMC, etc shows if Smart Driver is activated and gives a monthly report of how you’ve been driving. If you’re signed up for it I think it’s emailed to you as part of the monthly vehicle report OnStar sends.
I’ve been getting emails from OnStar about every 6 months since I bought my Sierra Denali promoting the Smart Driver program and imploring me to sign up for it to “save money on my insurance”. The Smart Driver emails, the MyGMC app, and the OnStar website are all very clear about the fact that with your consent information about your driving habits will be shared with LexisNexis and other data collection services, where it can be viewed by insurance companies.
This sounds like buyers remorse to me. My guess is the person in the article signed up for OnStar Smart Driver thinking they could “save money” on their insurance, not realizing that how they drive might be construed differently by an insurance company, compared to how they themselves perceive how they drive. I’m not defending GM. In fact I’m not real happy with GM right now since my Denali just suffered the lifter failure so common with GM V8’s, ruining my vacation. But I also don’t like how the media often spins stories, leaving out certain details, or how people complain when decisions they freely made, turn out differently then they expected.
I don’t use OnStar and when my State Farm rep offered a safe driving discount in return for monitoring my vehicle movements, I declined. I don’t need a nanny looking over my shoulder. My 48 year driving record speaks for me, which State Farm has full access to.
I have a good rapport with my State Farm insurance rep. I asked him a few years back would you sign up for one of these devices that monitors your driving. He was quick to answer no.
I asked my State Farm agent yesterday about Safe Driver discount. She said I’m getting a lot of discounts and it wouldn’t help.
Exactly. This is a simple case of not understanding what the vehicle operator was subscribing to and allowing. The owner must agree to authorize Smart Driver.
I only receive one message about the feature a few months ago.
Now, on the other hand SiriusXM marketing just doesn’t give up!
Another reason for my Trax to be my commuter and my GTI to be my “pleasure” car. No satellite, no phone connectivity…it’s pretty analog when compared to my Trax.
Was aware of Smart Driver years ago and opted out of that sh*t IMMEDIATELY! I Check the My Chevrolet app periodically to ensure I’m not enrolled.
I never signed up for the “Smart Driver” program. I am careful about joining any program that affects my privacy. I just checked and had to “opt out”. I recommend that you check as well.
I really enjoy the Chevy I am driving, and have been buying GM vehicles new since 1997. This makes me want to scream! I will definitely be looking for a car company that won’t sell my personal data by default in the future (if one exists).
I feel General Motors is trying to make as much money as possible through OnStar. Modern day, top of the line, smartphones have made OnStar obsolete. Smartphones can even automatically notify Emergency Services of your location in the event of a crash.
I keep location services off on my iPhone I don’t want Apple tracking me either.
Take the fuse out of the onstar system. Problem solved.
Pulling the fuse (F31 or F02 depending on the build year) can cut other functions.
There is a step by step illustrated guide to disabling Onstar online (found easily via search engine).
Something is seriously wrong when a car make spend time, money and effort to design, make and install a feature and some owners even think about spending time, money and effort to disable it.
It doesn’t quite work that way Tom. Here’s the Reader’s D… short version why….
On Global “A” GM vehicles, the Telematics Communication Interface Control Module (TCICM) aka “Onstar” module, is on both High Speed and Low Speed CAN. (HS GMLAN and LS GMLAN)
On Vehicle Intelligence Platform models there is no LS GMLAN and the Onstar Module has a numeric CAN designation. E.G A 2021-2024 current model Yukon VIP K69 Onstar Module is on CAN 2, which is CAD FD (Flexible Data rate)
Pulling the fuse will generate DTCs and various Driver Information Centre (DIC) messages.
FWIW, all Global “A” HS GMLAN (modules on Primary High Speed CAN 1) require power, ground, communications enable and ignition where needed, plus module and bus integrity to function (“bake the cake”). Lose any of these “ingredients” and the “cake won’t rise”.
The Body Control Module (BCM) provides a dedicated B+ voltage to all HS GMLAN modules as a permanent keep awake.
When a module fails to communicate, the other modules on the network that communicate with a module that is missing, flag DTCs for the module that is MIA.
Similarly, in GM single wire LS GMLAN (Low Speed CAN), the BCM sends out a momentary 10-12 volts wake-up signal on the bus to the modules. The BCM and any other that communicates with Onstar will flag DTCs.
So, pulling the “Onstar” fuse isn’t a good idea in the big scheme of things…..
When I factory ordered my 2006 Corvette Coupe, OnStar was an option for both the hardware and the OnStar app. I was able to decline them both as they were options. Did not want any added Telemetrics beyond what was required by Federal law! Didn’t want to pay so GM could make money by “selling” more of my personnel data.
I wonder when some smart lawyer starts a class action lawsuit? GM has lots of money and it would be easy to get from such a large company taking “unaware” people’s privacy away.
No one took their privacy away, they signed up for it and if they didn’t read the “fine print” that’s on them, not GM. The case wouldn’t even make it to court. This is why you’re supposed to read before you sign.
When I bought my 2022 Trailblazer the sales person made me sit in the car, pressed the Onstar button and told me I needed to set it up before leaving the lot. No Onstar paperwork, no fine print. I just logged onto my Chevrolet account and opted out of the Smart Driver program, thanks to this article. Like JK above, back in 2006 I intentionally found a vehicle (GMC Canyon) without Onstar and still drive that occasionally (215K miles). Opting into the program should require a separate form when buying a vehicle so that it is very clear what you are agreeing to. The default should be “opted out” without the form.
I shut the smart driver off after putting a pedal monster on my 2021 2500hd duramax, what a difference it made!
Another NYT article today says a Florida 2021 Cadillac XT6 is suing GM & Lexis Nexis over the alleged sale of his info to insurance companies after his premium nearly doubled.
If you have mychevolet app on your phone and onstar you can shut that function off.
Several have mentioned that it is the responsibility of the car buyers to read the fine print but there is lots of responsibility to the companies and their lawyers for making the “fine print” so hard to read and too long for normal people to read in a reasonable time. Agreeing to data collection should be strait forward and simple “do you agree to your car collection information and selling to others” as opposed to multiple pages of legalese.
i discontinued my Onstar account today and will never by from GM I don’t need them spying on me
While this thread is a bit old, I think it’ s useful note that Sirius is likely also selling data to LexisNexis.
Also, even if you don’t have an active OnStar account, it can be activated (secretly). While I’m OK with a warrant driven activation (npi), it seems like there is some potential for abuse.