Car makers are being accused of spying on drivers, giving data to insurance companies without consent — and US drivers are complaining about spiking premiums. Is your vehicle watching you?

How your driving data gets collected

Today’s cars are equipped with advanced technology capable of tracking a variety of driving habits. Telematics systems, for instance, monitor metrics such as speed, braking intensity, mileage, and even the time of day you’re driving. This data is then transmitted through cellular networks, creating a treasure trove of information about your driving behavior.

While these systems are often touted as tools to improve safety, critics say they also serve another purpose: providing valuable data for automakers, data brokers, and insurance companies.

And some automakers have been accused of sharing this driving data — allegedly without clear consent — with information brokers, who in turn sell the information to insurers.

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Why this data matters to insurers

Instead of relying on historical data or credit scores, insurers can use telematics data to assess risk more precisely. On the surface, this might seem fair: Safe drivers could theoretically see lower premiums.

But there’s a flip side: Drivers who rack up high mileage, commute during rush hour, or exhibit behaviors flagged as “risky” could see their data used to raise rates. Some drivers allege their premiums have increased despite no change in their driving habits, simply because of data shared by their automakers.

These practices have triggered legal action in multiple states, with plaintiffs arguing the data collection violates their privacy rights and that they weren’t adequately informed or given a choice to opt out. At least seven class action lawsuits have been filed against General Motors, OnStar, and data brokers LexisNexis and Verisk Analytics.

“Millions of American drivers wanted to buy a car, not a comprehensive surveillance system that unlawfully records information about every drive they take and sells their data to any company willing to pay for it,” said Texas Attorney General Ken Paxton after his office sued General Motors in August for false and deceptive business practices.

The controversy has caught the attention of lawmakers in Washington. Senators Ed Markey and Ron Wyden urged the Federal Trade Commission this summer to “hold senior company officials responsible for their flagrant abuse of their customers’ privacy.”

Automakers say they’re not collecting any data without customer consent — even if that consent is buried in manuals and legalese, as Markey contends. A 2014 “Code of Conduct” agreed to by several major automakers provides “greater protection to consumers than what is available through other codes of conduct or through comprehensive privacy laws that have been enacted in various states,” Hilary Cain, a senior executive for industry group Alliance for Automotive Innovation, told Bloomberg Law in September.

How to tell if your car might be spying on you

Not all vehicles are collecting and sharing data, but it can be tricky to know if yours is. Here are some steps to help you find out:

Check the owner’s manual: Look for sections on telematics, data sharing, or privacy policies. Some automakers disclose their practices in the fine print.

Contact the manufacturer: Ask directly whether your car collects driving data and if that data is shared with third parties.

Review mobile apps: Many modern vehicles connect to companion apps. These apps often outline what data is collected and how it’s used.

Request your data report: Companies like LexisNexis allow consumers to request a copy of their driving data. This can help you see what information has been collected and shared.