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Kenn Dahl’s Insurance Dilemma
Kenn Dahl, a meticulous driver and owner of a software company, was perplexed when his car insurance rates suddenly rose by 21 percent in 2022. Despite driving a leased Chevrolet Bolt and maintaining a clean driving record without any accidents, Mr. Dahl found himself at a loss.
Upon investigating, he discovered that a significant factor contributing to the sudden surge in insurance costs was his LexisNexis report. This comprehensive document outlined intricate details of his driving behavior, which were obtained and utilized by his insurance provider, as reported by the New York Times.
Data Brokerage Intrusion
LexisNexis, a prominent data brokerage firm with a specialized division focusing on auto insurance risk assessment, supplied Mr. Dahl with a voluminous 258-page report upon request. This report unveiled minute details of his driving habits spanning over six months, data that he had never fathomed would be shared without his explicit consent.
Expressing his dismay, Mr. Dahl conveyed to NYT, “It felt like a betrayal. They’re taking information that I didn’t realize was going to be shared and manipulating our insurance rates.”
Auto Industry Data Sharing
Noteworthy is the involvement of automakers such as General Motors in the collection and dissemination of driving data to insurance companies. This collection encompasses crucial details including the manner, speed, braking intensity, and rapid accelerations of the vehicle, although precise location specifics are withheld.
Contrary to the assumption that only participants of usage-based insurance programs are subjected to such scrutiny, the New York Times discloses that Ford Motor’s patent application acknowledges the reluctance of drivers to actively share such data, a reluctance that has prompted car manufacturers to harvest this information passively through internet-connected vehicles.
Consumer Privacy Concerns
The ramifications for consumer privacy loom large. OnStar’s Smart Driver, a service offered by GM, has come under scrutiny for privacy violations. While GM maintains that this service is optional and associated with certain benefits, customers like Mr. Dahl have experienced spikes in insurance premiums without overt consent.
Mr. Dahl recounted his ordeal on a Chevy Bolt enthusiasts’ online forum, where others expressed surprise at the revelation that LexisNexis possessed their driving data. Online discussions linked to G.M. vehicles, including the high-performance Corvette, emphasized concerns about data tracking. Instances of increased premiums emerged, with a Cadillac driver in Palm Beach County, Fla. contemplating legal action against G.M., after facing insurance rejections from multiple firms.
The Cadillac driver, Mr. Dahl, and other forum users shared a common link—they were all users of OnStar Smart Driver. This feature, integrated into GM’s internet-connected car applications like MyChevrolet and MyCadillac, has sparked debates regarding data privacy and insurance policies.
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