General Motors has agreed to pay $220 mn to resolve allegations that it improperly sold customers’ driving behavior and location data to brokers, which subsequently supplied the information to insurance companies for use in setting premiums.
According to Reuters, the agreement, announced by attorneys general from 35 US states and the District of Columbia, concerns GM’s Smart Driver program, which operated from 2016 until it was discontinued in 2024.
- General Motors agreed to a $220 mn settlement with 35 US states and the District of Columbia over allegations of improperly sharing drivers’ personal data.
- GM’s Smart Driver program collected driving behavior and location information from millions of motorists between 2016 and 2024.
- The agreement requires GM to limit data collection and obtain explicit consent before collecting or sharing driving information.
Regulators alleged that GM marketed the program as a way for motorists to improve driving safety but violated its privacy commitments by selling personal information without proper permission.
Millions of motorists participated in Smart Driver, including customers enrolled in GM’s OnStar safety, navigation and vehicle diagnostic service.
GM driver data allegedly used to increase auto insurance premiums
According to state investigators, data brokers obtained information about drivers’ behavior and vehicle locations from GM and sold it to insurers, which used the records to determine insurance rates and, in some cases, increase premiums.
People bought a car, not a tracking device
Dan Rayfield, Oregon Attorney General
Rayfield and Washington Attorney General Nick Brown led the bipartisan coalition investigating the automaker’s data practices.
The agreement requires GM to restrict its collection of driving information and obtain motorists’ express consent before collecting or sharing that data.
A GM spokesperson said the resolution reinforces privacy measures already introduced by the company. “Safer, more helpful and personalized experiences are enabled by connected vehicle data, and GM is committed to being clear about what information is used, how it’s protected, and the choices customers have about what they share.
Telematics and data privacy in US auto insurance
The case concerns the commercial use of telematics, technology that allows insurers to assess driving habits and incorporate individual behavior into insurance pricing.
Major auto US insurers, including Allstate, Progressive and Berkshire Hathaway’s Geico, use insurance telematics programs to monitor motorists’ driving patterns. Insurers say these systems can reward safer drivers through lower premiums.
The allegations against GM focused on whether customers had knowingly authorised the collection and sale of their information, rather than the use of telematics in insurance underwriting itself.
Previous GM regulatory actions over driver information
The multistate action follows earlier investigations into GM’s handling of connected vehicle data.
- In May 2026, the automaker agreed to pay $12.75 mn to resolve a California investigation into allegations that it sold driver information to two data brokers.
- In January 2025, GM reached an agreement with the US Federal Trade Commission prohibiting the disclosure of vehicle geolocation and driving behavior information to consumer reporting agencies for five years.
The regulatory actions have imposed restrictions on GM’s handling of connected vehicle information following the closure of Smart Driver, particularly regarding customer consent and disclosures to third parties.
