GM settles California lawsuit claiming it sold driving habit data to insurance companies

GM became the subject of several lawsuits after a 2024 report by The New York Times revealed that automakers, including GM, had been sharing driving data — such as speed, hard braking, and rapid acceleration — with data brokers and insurance companies, which reportedly adjusted pricing based on this information.

Under its settlement with California, GM must provide “clear and conspicuous” privacy notices about data collection when drivers enroll in OnStar. The automaker is also required to delete all driver data covered by the lawsuit and ask for customer consent before collecting or using a person’s driving data.

“This agreement addresses Smart Driver, a product we discontinued in 2024, and reinforces steps we’ve taken to strengthen our privacy practices,” GM spokesperson Charlotte McCoy says in an emailed statement to The Verge. “Vehicle connectivity is central to a modern and safe driving experience, which is why we’re committed to being clear and transparent with our customers about our practices and the choices and control they have over their information.”

“Today’s settlement requires General Motors to abandon these illegal practices and underscores the importance of the data minimization in California’s privacy law — companies can’t just hold on to data and use it later for another purpose,” California Attorney General Rob Bonta says in the press release.

Update, May 11th: Added a statement from GM.