When Romeo Chicco tried to get car insurance in December, seven companies refused him. When he finally got insurance, the premiums were almost double what he had previously paid. That’s because his 2021 Cadillac XT6 was spying on him, according to a federal complaint filed this week seeking class-action status.
Modern cars are called “smartphones on wheels” because they are connected to the internet and equipped with sensors and cameras. According to the complaint, a Liberty Mutual representative told Chicco that the offer was denied because of information in the LexisNexis report. Data broker LexisNexis Risk Solutions has traditionally monitored insurance companies for driver moving violations, prior coverage and accidents.
Mr. Chicco requested the LexisNexis file, which contained details about 258 trips he had taken in the Cadillac over the past six months. His file included the distance he drove, the start and end dates of his trips, and records of speeding, hard braking, and acceleration. The data was provided by General Motors, the manufacturer of his Cadillac.
In his complaint against General Motors and LexisNexis Risk Solutions, filed in the U.S. District Court for the Southern District of Florida, Chicco accuses the companies of violating privacy and consumer protection laws. The lawsuit alleges that, unknown to consumers, automakers share information about driving behavior with the insurance industry, resulting in higher premiums for some drivers, according to The New York Times. This has been reported. LexisNexis Risk Solutions and another data broker called Verisk claim to collect real-world driving behavior from millions of cars.
Chicco said in his complaint that he repeatedly called GM and LexisNexis to ask why his data was being collected without his consent. Ultimately, he learned that his data was sent through OnStar (GM’s connected services company, which is also the name of the lawsuit), and that he also received driver feedback and digital badges for good driving. I was told that I had registered for OnStar’s smart driver program, which is a feature that allows drivers to drive.
Chicco said he had the General Motors app MyCadillac downloaded into his car, but not registered it with OnStar or Smart Driver.
“I can’t tell anyone how I registered,” Chicco said in an interview with The Times this month. “You can tell me how many hard accelerations you did between 6 a.m. and 8 a.m. on January 30th, but can you tell me how you registered?”
GM spokeswoman Mallory Rusich previously said customers sign up for SmartDriver in the connected car app or at a dealership, and a provision in OnStar’s privacy statement states that data may be shared with “third parties.” He said it had been explained. Asked about the lawsuit, she said in her email that the company was “reviewing the complaint” and did not comment, instead pointing to statements the company had previously made regarding the OnStar Smart Driver.
“GM’s OnStar Smart Driver service is an option for customers,” the statement said. “Customer benefits include being able to learn more about safe driving behavior and vehicle performance, which, with consent, can be used to obtain insurance quotes. Customers can register at any time through his Smart Driver can be canceled.”
LexisNexis Risk Solutions, which previously said it analyzed a type of driving data found in Chicco’s files to create risk scores that it sold to insurance companies, declined to comment.
Chicco previously said, “If it were me, I would never have allowed this data to be leaked.” He said he was contacted after the lawsuit was filed but had no comment.
David Vladeck, a Georgetown law professor who previously served as director of the Federal Trade Commission’s Bureau of Consumer Protection, said the driving data companies collect is considered highly sensitive. It said that “clear notice” to consumers and explicit consent to their collection is required. And sales.
Vladek said he expected an FTC investigation as well as consumer lawsuits against automakers and data brokers.
“Wait for the avalanche to happen,” he said. “It’s coming.”
