The settlement allegeѕ that GM sold names, contact information, geolocation data, and driving behavior data of hundreds of thousands of Californians to data brokers Verisk Analytics and LexisNexis Risk Solutions via OnStar, earning about $20 million from these data sales.

GM agreed to pay a total of $12.75 million in civil penalties to California and other parties as part of the driver privacy settlement led by the California Attorney General.

Separately, GM agreed to a $12.5 million settlement over claims it illegally sold California driver data collected from OnStar between 2020 and 2024.

California officials emphasized ongoing enforcement of privacy laws and continuous monitoring of automakers’ data practices.

The case highlights concerns about how modern vehicles collect and share data, with policymakers calling for transparency, opt-out rights, and greater control over data collection by automakers.

The settlement underscores California privacy law principles to minimize data retention and avoid using data for unintended purposes without consent.

resurfacing concerns from a 2024 Times piece about automakers sharing driving behavior with insurers and potential increases in costs, which the settlement aligns with by stressing data minimization and consumer consent.

California authorities say insurers are prohibited from using driving data to set rates, and drivers are not expected to face higher auto insurance premiums as a result of this case.

Despite a state law barring insurers from using driving data to set rates, authorities say the data was used to influence insurance pricing.

The attorney general’s office notes the data sales did not raise California insurance prices, consistent with the law.

The settlement is described as the largest California Consumer Privacy Act penalty in state history, though formal court approval is still needed.

The data originated from OnStar services, which include roadside assistance and navigation, reflecting broader scrutiny of automakers’ data sharing with the insurance industry.