My insurance agent requested our investigative assistance concerning an unusual issue, and my findings were stunning! His rural client, who had an excellent driving record, was upset that her automobile rates had spiked 22%. Upon contacting insurance brokers, he learned “third parties” mysteriously determined her speeding, braking, and driving “exceeded safety standards.” She was issued a “troublesome-driver’s-insurance-score,” which increased her premiums! The client and agent wondered, “How did unknown, distant outsiders know about her driving habits?”
Let’s begin with exploding artificial intelligence (AI). Our modern refrigerators, televisions, smartphones, and small items like baby monitors are secretly collecting personal data. Intelligence agencies have determined that foreign governments are conducting surveillance through innocent-looking apps and home appliances. New York Times reported (January 2025) “Concerns that the Chinese government could manipulate content and gain access to sensitive user data through the Tik Toc app, which is owned by the Chinese company ByteDance, prompted Congress to pass legislation to ban the social media platform.”
Late-model cars manufactured after 2012 transmit enormous amounts of data (4,000 gigabytes per day). Our automobiles have become “Computers on Wheels.” My new automobile dialogues with me and drives itself while using sonar, radar, and 360-degree cameras. Images and information collected are fed into powerful computers to guide and protect my vehicle and me through traffic. It’s like piloting a spaceship with unbelievable technology!
However, advanced science is recording every move our cars make and reports everything about you, your surroundings, and the occupants, without your knowledge or permission. You, your family, and friends are “legal victims” of data robbery that suddenly delivers higher insurance premiums! Washington Post reported 84% of automotive manufacturers share and/or sell your personal data! Fifty-six percent provide captured-consumers’ information to government or law enforcement upon request without warrants.
Here’s how it works:
Step 1: When buying new or recently-used automobiles, you are strongly pressured to install manufacturer’s apps on cellphones. Dealerships describe apps as “part of the sale.” With recent car purchases, zealous sales agents wanted to “Help me” establish manufacturer’s apps. They asked me to privately enter my Google or Apple passwords so they could “take over” and download apps as an essential priority. The motivation was I could crank or unlock my car remotely using cellphones; be notified about vehicle recalls, alerts, and its location; call for roadside or accident assistance; know vitals like tire pressure; and receive maintenance reminders. Sounds innocent and appealing.
Little did I know that dealers and staff receive manufacturers’ rewards for activating their apps. And, worse, I was unknowingly giving reps my “Durable Power of Attorney” to select different types of private data to share with manufacturers or third-party companies without my input or knowledge.
Step 2: Once apps are activated, your car’s computer, using cellphones, microphones, sonar and radar information, navigation, and camera systems, connect with satellites and cellphone towers to transmit detailed data about you to manufacturers. These apps search information on your cellphones like address books (phone numbers, e-mails, texts, and call history); companion apps; car’s speed, braking, swerving, and seat belt usage; physical addresses and navigation destinations; vocal commands and voice recognition; hundreds of car sensor’s data; and camera footage of you and your family or friends outside/inside cars, including “intimate sexual events.” You might think you escaped speeding tickets with law enforcement, but your car secretly recorded and reported infractions to insurance companies through third parties!
Unfortunately, your data being transmitted isn’t secure. Hackers can access your private information and even gain control of cars! In fact, a major automobile maker quietly reported that 3.3 million sensitive consumer files were breached and surfaced on public domains.
Step 3: I recently purchased a new car, and while salespersons subtly pressured me to activate the app, I decided to do so later, which was revealing! Manufacturers report they don’t share your private information with third parties UNLESS “You” agree! Of course, the word “You” is most often a “third-party” completing the app’s content without your consent! One of the many privacy and data options for me to consider while activating my app which I declined was: “When you click the ‘Accept’ button, you agree to share your vehicle’s acceleration, speed, braking, steering with our affiliates which may “anonymously share” locations & driving data with their partnered insurance providers to determine if you qualify to save on insurance products and services.” The invitation was appealing but disguised to sell information! “Affiliates” include data brokers, marketers, dealers, insurance companies, streaming, and satellite services like SiriusXM, Google maps, etc.
Step 4: The manufacturers may share/sell your data to third parties for millions of dollars. Data brokers use information they purchase, along with other variables like financial history, to issue “risk scores.” They, in turn, sell your valuable rating to insurance companies that generate your premiums. Unfortunately, you cannot request, understand, or protest how your driver-score’s formula is calculated! In addition, they sell information to marketeers to customize their advertising content, pinpoint routes you take and areas you live, to promote services such as gas stations and restaurants.
We examined studies of 25 car manufacturers’ privacy agreements. Some drivers unknowingly shared their racial or ethnic origin, religious or philosophical beliefs, e-mail content, texts, health, and sex life or sexual orientation! WOW! Research indicates that so many hands are in the “shared data pot” it’s impossible to determine who receives all your information. No wonder we end up with hundreds of unwanted advertisements and solicitations each week that have been customized to our particular interests and lifestyles.
Automobile insurance companies can review your claims history using the Comprehensive Loss Underwriting Exchange (CLUE) database. Modern cars have black boxes, similar to airplanes, known as “Event Data Recorders.” They aren’t accessible to outsiders and only maintain 30 days of events. They require special technical expertise to extract and review data unless approved by car owners or court orders. These are separate, protected systems from data-sharing apps. It’s helpful to law enforcement and lawyers for accident investigations or lawsuits.
So, how do you prevent legal thieves from using our automobiles as their “eyes and ears” from travelling deep into your personal lives? If you own vehicles manufactured before 2012, when Auto-WIFI appeared, no worries. For those vulnerable car owners created after that year, consider the following:
1. If you purchase new or modern used cars, decline dealer’s efforts to download manufacturer’s apps “on your behalf,” set up Bluetooth on cars, or give you an electronic tour! Instead, ask which app to download (see pictures since many look similar) and install for yourself later. Don’t give your cellphone and passwords to sales reps, and carefully read privacy statements. I was impressed that Toyota allowed me to “accept or deny” certain privacy sections, while being disappointed with Ford-Lincoln limited consumer options.
2. I like Bluetooth so I’m able to drive while communicating handsfree. However, once you connect cell phones to your car, information may be uploaded to manufacturers.
3. Check the owner’s manuals and apps in sections labeled “Privacy Settings.” They include how to locate and turn off unwanted privacy access and outline ways to contact manufacturers. Examine lengthy privacy statements that bury confusing legalese. Look for words like, “sell,” “share,” “third-parties,” “Insure Connect,” “data privacy,” “driver feedback,” "driver’s score,” “discount,” “driver data,” “smart driver,” “drive safe,” and other deceptive language that can lure you into engaging with “legal stealth data theft!” However, be careful not to decline or avoid installing certain parts of the apps since your efforts may cancel important, desired features. These include emergency accident SOS services, towing help, navigation, and vehicle health (tire pressure, maintenance reminders, recalls, etc.). Most apps issue warnings with explanations of the consequences if you’re about to decline any critical services.
4. Be hesitant about insurance companies’ offers to install apps or connect 2” devices (called dongles) in your glove compartment or computer ports to monitor driving habits for “alleged” discounts. My independent agent reported that several regional insurance agencies were invited to experiment in the monitoring program that marketed policy discounts. Their staff performed poorly using these devices. Consumer Reports noted, “Because driver monitoring is a way for insurance companies to track how you use your car in order to more accurately calculate your annual premium, the data can also be used to raise your rate if they don’t like what they see.”
5. Visit www.VehiclePrivacyReport.com and type in your VIN number, which is located on the car’s registration card or on the front driver’s side of the lower windshield. This website provides free reports regarding information manufacturers collect from your vehicle. Good stuff!
6. Contact companies that may partner with automobile manufacturers. Kashmir Hill published a 2024 New York Times article that announced, “LexisNexis is a New York-based global data broker with a ‘Risk Solutions’ division that caters to the auto insurance industry and has traditionally kept tabs on car accidents and tickets.” According to www.autoinsurance.org many insurance carriers utilize this company. For your detailed report, go to https://consumer.risk.lexisnexis.com/request and complete their simple “On-line Request Form.” After receiving my results, it was surprising how much they knew about me! The second data-sharing company mentioned in the 2024 media was Verisk. However, their website currently reports “Verisk no longer receives driving behavior data from automakers to generate Driving Behavior Data History Reports.” A third company is High Mobility. When we accessed their website, https://www.high-mobility.com/car-api, the following statement appeared: “High Mobility's connected car API allows your mobility service to get data access clearances and receive real-time updates from millions of cars from OEMs.” They did mention following strict German data guidelines. Europe has passed laws that define all data generated by cars as the owner’s and that it cannot be shared or sold.
The Bottom Line: Privacy laws sounded good when they were initially approved by Congress, but they have become a pain for businesses and consumers who rarely read them. Unfortunately, we often sign away our rights to share or sell sensitive, private information with third parties. Data-sharing can spike your insurance premiums, so use caution on your privacy-protection journey! However, while it takes time to examine all of your private content, your investigative efforts may be a worthwhile investment.
Mike voluntarily authors these articles for 5 newspapers to fulfill his purpose “Creating opportunities to improve lives.” Visit his nonprofit website www.mikedubose.com and register to receive his monthly articles or Daily Thoughts plus free access to his books, including “The Art of Building Great Businesses.” The website includes 100+ published articles he has written on business, travel, and personal topics, in addition to health research with Surb Guram, MD, Allison Cashman, MD, and David Hurst, DMV.
