Your Car is Selling Your Driving Data to Your Insurance Company Right Now (2026 Complete Guide)
Auto Roamer
11 min read
Prices verified February 2026
Includes Video
The day before Philip Siefke shopped for car insurance, he braked hard. Less than 24 hours later, Progressive already knew. "How the eff did they have my information?" he demanded Siefke said , incredulous. The insurer explained the data came from Toyota, likely from a "research project" embedded in the car's telemetry.
The day before Philip Siefke shopped for car insurance, he braked hard. Less than 24 hours later, Progressive already knew. "How the eff did they have my information?" he demanded Siefke said, incredulous. The insurer explained the data came from Toyota, likely from a "research project" embedded in the car's telemetry. Just about everybody does, the rep added. Around 90% of new cars collect driving behavior data, often sold to third parties like insurance companies. Buyers technically consent, but the agreement is usually buried in the mountain of paperwork signed at purchase, a fact most drivers are completely unaware of Siefke's attorney stated. Automakers are collecting and sharing this "driver behavior data" with multiple companies, which can then influence your insurance premiums Consumer Reports found. This car selling driving data insurance practice means your car might be tracking you more closely than you think.
The Short Answer
Your car isn't just a mode of transport; it's a data-collecting device that likely shares your driving habits with insurance companies, often without your explicit understanding.
The framework for understanding this is simple: your car is a connected computer. Nearly 90% of new cars gather information on your driving behavior Your car could be ratting you out to your insurance company - CNN. This includes details like acceleration, braking, and cornering Your Car May Be Spying On You. Here's How to Get It to Stop.. Automakers frequently sell this data to third parties, including insurance carriers.
The core issue is often buried consent clauses within the mountains of paperwork you sign when buying a car Automakers sell driving data to insurers - WISN. When your focus is on price and loan terms, privacy agreements detailing data sale are easily overlooked. This means drivers can unknowingly agree to share intimate details about their driving habits, leading to surprises like sudden rate hikes.
For instance, one driver's insurance premium jumped significantly after a single hard brake, information his insurer obtained directly from the automaker Your car could be ratting you out to your insurance company - CNN. This practice highlights how car selling driving data insurance companies leverage telemetry to assess risk. Even if you drive conservatively, the data can be interpreted in ways that negatively impact your premiums Is Toyota Sharing Your Private Driving Data With Insurance ....
This isn't limited to a few manufacturers; the practice is widespread. While General Motors faced FTC penalties for selling data without knowledge or permission, other automakers continue similar data collection and sharing Your Car May Be Spying On You. Here's How to Get It to Stop.. Understanding this connected car data privacy landscape is crucial for drivers.
Understanding how your driving data impacts your insurance can also help clarify why your credit score matters in determining rates.
What You Need to Know
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Your car is a data collection device, and this isn't science fiction. Most new vehicles, around 90%, actively gather information about your driving habits. This telemetry includes details like acceleration, braking intensity, cornering speed, and even where and when you drive. CNN and WISN confirm this widespread practice.
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Automakers are selling this data to third parties, primarily insurance companies. The consent for this data sharing is often buried deep within the extensive paperwork you sign when purchasing a vehicle. This means many drivers unknowingly agree to have their driving behavior tracked and sold. CNN highlights that drivers often have "no idea they're agreeing to the sale of their data."
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Your driving data can directly impact insurance rates, often without your explicit awareness. Take the case of Philip Siefke, whose insurance premium with Progressive was affected after a hard brake, information Toyota had shared. CNN reported this incident, illustrating how a single driving event can be used against you. This practice is a significant concern for connected car data privacy.
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Different vehicle types may collect data differently, but the core issue remains. While sedans, SUVs, trucks, and vans all have integrated computer systems, the specific telematics packages can vary. However, the trend of automakers embedding data collection capabilities is nearly universal across new models. This is why understanding is my car tracking me is crucial for all vehicle owners.
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Data brokers act as intermediaries, often receiving driving behavior data from automakers. Companies like LexisNexis and Verisk then package this information into driver scores, which are subsequently sold to insurance companies. This creates a complex chain where your driving habits are commodified and used to influence your insurance premiums. The New York Times details how this data flows from cars to brokers and then to insurers.
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Specific manufacturers are facing scrutiny over their data sharing practices. A lawsuit against Toyota, Progressive Insurance, and data broker Connected Analytic Services alleges that Toyota shared driver data without proper consent. This situation underscores the need for greater transparency in car data collection. For The People provides details on this lawsuit, which impacts many Toyota vehicles made in 2018 or later.
As automakers embrace subscription models, understanding how this smart tech influences your premiums is essential; explore the impact in our article on insurance premiums.
How to Handle This
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Scrutinize your car's privacy settings - This is your first line of defense against your car selling driving data. Most modern vehicles have in-car infotainment systems with complex menus that hide data-sharing options. Actively dig through these, often requiring the car to be stationary and in accessory mode, to find and disable telemetry or connected services that transmit your driving habits. Defaults are rarely privacy-friendly. Skipping this step means your car continues to log and potentially broadcast your every move directly to data brokers.
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Review purchase and service agreements for data clauses - The initial car purchase paperwork and subsequent software update agreements often contain buried consent clauses. These are legal loopholes automakers use to justify selling your driving data. Meticulously read or at least skim these documents for any mention of data collection, sharing, or third-party access related to vehicle usage or driving behavior. Skipping this gives blanket permission for your car's telemetry - speed, braking, acceleration, location, and more - to be packaged and sold, potentially leading to surprise insurance rate hikes, as happened to Philip Siefke after a single hard brake event (WISN).
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Contact your automaker and insurance provider directly - If you suspect your car is tracking you or if your rates have unexpectedly increased, don't rely solely on in-car settings. Call your automaker's customer service and your insurance company. Ask specific questions about what data is collected, who it's shared with, and how to opt-out of all data sharing programs. Be persistent; you might need to escalate the call or speak to specialized departments. Failing to do this leaves you vulnerable to having your driving data used against you without your explicit understanding or consent.
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Consider disabling connected services or opting for older vehicles - For maximum connected car data privacy, disable features like Wi-Fi hotspots, remote start via apps, or cellular connectivity if your car allows it. This severs the communication lines that transmit your driving data. Alternatively, if you're in the market for a new car, consider models without advanced connectivity features or look at pre-2018 vehicles which generally had less sophisticated data collection capabilities, as highlighted in the context of Toyota's data practices (forthepeople.com). Skipping this means accepting the ongoing risk that your driving habits are being logged and sold.
As your vehicle gains new communication capabilities, it's crucial to be aware of potential vulnerabilities, like how cars can be hacked remotely.
What This Looks Like in Practice
- Winter Mountain Pass in a Subaru Outback A driver navigates a treacherous mountain pass in a Subaru Outback during a snowstorm. The car's advanced traction control and stability systems log frequent ABS activations and sharp steering corrections. This telemetry is transmitted to data brokers who package it for insurance companies. The driver later sees a premium increase, attributed to "aggressive braking and acceleration events" recorded by the vehicle's connected services. Your car could be ratting you out to your insurance company - CNN.
- Summer Desert in a Honda Civic A Honda Civic owner takes a long road trip through the desert, frequently exceeding the speed limit. The car's infotainment system logs these instances of high-speed driving. The car's user agreement grants the automaker permission to collect and sell this driving behavior data to third parties, who provide it to insurance companies. The driver is blindsided when their next insurance quote reflects significantly higher rates due to a pattern of "frequent speeding." Automakers Are Sharing Consumers' Driving Behavior With ....
- Urban Commute in a Toyota Camry A Toyota Camry driver experiences a typical, stop-and-go urban commute. The vehicle's sensors meticulously record every hard brake, quick acceleration, and lane change. This data is compiled and shared with companies that provide it to insurers. The driver, unaware of this data flow, may only discover it when applying for a new policy and finding their driving profile already established, leading to surprise rate adjustments. Is Toyota Sharing Your Private Driving Data With Insurance .... This practice fuels the connected car data privacy debate.
- Highway Cruise in a Ford F-150 A Ford F-150 driver uses the vehicle's adaptive cruise control extensively on a long highway journey. The system's constant micro-adjustments in speed and distance are logged as driving telemetry. This data is aggregated and can be sold to insurance companies, influencing premium calculations. The driver may not realize that their car is actively contributing to a data profile used by insurers, impacting their rates. Automakers sell driving data to insurers - WISN.
As vehicles become more connected, understanding how car software updates can affect driving is essential.
Mistakes That Cost People
Symptom You're surprised by a sudden increase in your car insurance premiums, or your insurer has unusually detailed knowledge of your driving habits.
Signal Your insurance rate jumped significantly without a clear explanation, or your insurer mentions specific driving incidents you never reported.
Fix Contact your insurance provider and ask precisely how they obtained your driving data. If it's from your vehicle's telemetry, demand to know which automaker and data broker were involved.
Symptom You unknowingly agreed to share your driving data when purchasing your vehicle, leading to potential rate hikes.
Signal Reviewing your car purchase paperwork reveals clauses about data collection and sharing that you didn't fully understand or even notice.
Fix Scrutinize your vehicle purchase agreement and any associated digital consent forms. Look for terms related to "telemetry," "driving behavior data," or "data sharing with third parties." Many automakers bury these clauses in lengthy documents.
Symptom You believe your car is only collecting data for internal diagnostics or basic functionality, not for external sale.
Signal You assume that because you didn't install a separate tracking device or app, your car isn't actively sharing your driving data.
Fix Understand that modern vehicles are sophisticated data collection hubs. About 90% of new cars gather driving behavior information, which is often sold to third parties like insurance companies without explicit user awareness.
Symptom You assume that opting out of specific manufacturer programs automatically prevents your car from collecting and selling driving data.
Signal You've disabled a specific infotainment or connectivity feature, believing this stops all data sharing.
Fix Disabling one feature doesn't stop all data collection. Many automakers have separate, often buried, consent mechanisms for sharing driving telemetry with insurance companies and data brokers. You need to actively look for and revoke consent for data sharing specifically.
Symptom You think older vehicles are exempt from this data-sharing practice.
Signal You own a car manufactured before 2018 and assume it lacks the necessary connected technology.
Fix While newer vehicles are more prolific data collectors, many cars made after 2018, such as certain Toyota models, include connected technology that tracks driving behavior and can share it with third parties without clear consumer consent.
Understanding how your driving data impacts your rates can help clarify why your insurance increases after an accident.
Key Takeaways
- Your car is actively collecting and selling your driving data to insurance companies, often without your clear consent Your car could be ratting you out to your insurance company - CNN. This practice is widespread, with about 90% of new cars gathering information on driving behavior Your car could be ratting you out to your insurance company - CNN.
- The agreement to share this data is typically buried in lengthy purchase documents, making it easy to overlook. Drivers often discover their data is being shared only when their insurance rates unexpectedly increase Automakers sell driving data to insurers - WISN.
- This connected car data privacy issue means your driving habits-like braking hard or speeding-can directly impact your insurance premiums carscoops.com. Companies like LexisNexis and Verisk then sell this information to insurers Automakers Are Sharing Consumers' Driving Behavior With ....
- The single most important thing to remember is that your car is a data-gathering device, and you likely granted permission for your driving data to be sold without fully realizing it. Be vigilant about reviewing consent forms and understanding what data your vehicle collects and where it goes.
Additionally, understanding a used car's accident history can be crucial, so consider reviewing our comprehensive guide on checking used family cars.
Frequently Asked Questions
Wait, is my car actually sending my driving habits to my insurance company without me knowing?
Yes, many new cars collect detailed driving data like your speed, braking habits, and acceleration. This information is often shared or sold by automakers to third-party data brokers, who then provide it to insurance companies. This can happen even if you didn't actively sign up for a telematics program.
How do car companies get away with selling my driving data to insurers?
Automakers typically get consent for data collection and sharing through clauses buried deep within the purchase paperwork you sign when buying a car. These clauses are often overlooked or misunderstood by consumers who are focused on the car's price and loan terms. Consequently, many drivers unknowingly agree to have their driving data shared.
What kind of driving information is my car collecting and potentially sharing?
Your car's connected systems can collect a wide range of data, including how fast you drive, how hard you brake or accelerate, when and where you drive, and even how often you drive at night. This detailed telemetry paints a comprehensive picture of your driving behavior.
Can my car's data lead to higher insurance rates?
Absolutely. Insurance companies use the driving data they receive to assess your risk. If the data indicates aggressive driving, such as hard braking or speeding, it can lead to surprise rate increases on your auto insurance policy. Some drivers have reported significant monthly premium jumps based on this information.
Is there any way to stop my car from collecting and sharing my driving data with insurance companies?
Stopping data sharing can be challenging, but it's worth investigating. You may need to review your vehicle's privacy settings or consult your car's manual for options to disable data collection or sharing features. In some cases, contacting your car manufacturer or insurance provider directly to inquire about opting out of data sharing programs might be necessary.
Sources
- wisn.com
- Your car could be ratting you out to your insurance company - CNN
- automakers-selling-driving-data-to-insurance
- Automakers sell driving data to insurers - WISN
- How to Figure Out What Your Car Knows About You (and Opt Out of ...
- carscoops.com
- Automakers Are Sharing Consumers' Driving Behavior With ...
- Your Car May Be Spying On You. Here's How to Get It to Stop.
- Is Toyota Sharing Your Private Driving Data With Insurance ...