Major car brand under fire for 'selling driving data' to motor insurance companies who hike premiums

The car manufacturer has been accused of installing technology in its cars which can collect data about drivers and their habits.

It ha been claimed that the data was then sold to car insurance companies and other groups without the drivers' consent, according to a report from Reuters.

Do you have a story you'd like to share? Get in touch by emailingmotoring@gbnews.uk

After the breaches came to light, Texas Attorney General Ken Paxton said the state would be investigatingseveral automakers who were at risk of collecting and selling mass amounts of data without drivers' knowledge.

Paxton explained that the General Motors data was used to compile "driving scores" on more than 1.8 million motorists in Texas.

The scores then determined whether the driver had "bad" habits such as speeding, braking too fast, steering too sharply into turns, not using a seatbelt behind the wheel or even driving late at night.

The Attorney General added that the data was used by insurers to determine premium prices, as well as to raise costs and even cancel or deny coverage.

A similar process exists in the UK through telematics insurance which is also known as a black box, although this is done with the driver's consent and knowledge.

The box installed in cars collects data that insurers can use when deciding whether to raise premiums, cancel policies or deny coverage.

According to Cinch, there are strict data protection laws in the UK which means that the data generated by a black box is protected.

“It's only shared with third parties who work with the insurer, or the police if they have your permission or a court order asking for it,” the experts detailed.

However, according to reports, GM cars have already had black boxes installed in most of their vehicles since 2015.

The Attorney General stated that the Detroit-based manufacturer failed to inform customers about the data-collecting technology with many drivers believing it was mandatory in the vehicles.

The data was collected through the brand's OnStar diagnostic products. It offers drivers automatic crash responses, emergency services support, roadside assistance, crisis assistance, stolen vehicle assistance and turn-by-turn navigation.

Paxton said in a statement: "Companies are using invasive technology to violate the rights of our citizens in unthinkable ways.Our investigation revealed that General Motors has engaged in egregious business practices that violated Texans' privacy and broke the law. We will hold them accountable."

LATEST DEVELOPMENTS:

• Millions of Britons at risk of 'nasty' parking scams as drivers face 'hefty fine from the council'
• Major car brand likely to delay huge electric vehicle project despite plans for a cheap £17,000 EV
• Pay-per-mile car tax changes to 'disproportionately affect' rural drivers who 'stand to lose the most'

In response to the claims, GM commented: "We've been in discussions with the Attorney General's office and are reviewing the complaint. We share the desire to protect consumers' privacy," Reuters reported.