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Imagine being a safe driver with a clean record, only to see your car insurance skyrocket by 21%.

Quotes from other companies are just as high. Turns out it was the smart car who was dobbing on you, sharing data about your driving start and end times, distance traveled, whether you were driving over the speed limit, did hard brakes or sharp accelerations.

Such hidden data  collection is happening today and car companies are selling this data to insurance companies, who are using this data to set your rates, potentially penalizing safe drivers for unknown reasons.

The kicker? Many drivers are unaware of this data collection. Car companies may:

  • Enroll them in data-tracking programs by default.
  • Hide the details in lengthy privacy policies that nobody reads.

This lack of transparency is concerning, especially when drivers:

  • Don’t understand what data is being collected.
  • Can’t easily opt out of these programs.

Some argue that usage-based insurance, where rates reflect driving habits, can promote safety. However, the problem lies in:

  • “Stealth enrollment” where drivers are unknowingly tracked.
  • Unfair penalization without clear explanations.

What you can do:

  • Check your car’s connected car app to see if you’re enrolled in such programs.
  • Use online tools to see what data your car can collect.
  • Contact your car manufacturer to request information about data collection practices.

This hidden data collection raises concerns about privacy and fairness.  By being informed, you can take steps to protect yourself and ensure your insurance reflects your actual driving habits. And make sure your smart connected car is not dobbing on you!