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GM agrees to pay $220 million to 36 states over driver data sold to insurance brokers
If you bought a GM car between 2016 and 2024, your braking and speeding data may have reached insurers, and the settlement changes what GM must ask of you.
The settlement
General Motors agreed to pay $220 million to 36 states to settle allegations that it sold drivers' data to brokers. [1] Those brokers sold the information to insurance companies, which used it in part to set people's rates. [2]
Washington and Oregon co-led the case, which was brought by a bipartisan coalition of 36 attorneys general. [2] Washington will receive $12.3 million, according to the Washington Attorney General's Office. [2]
The settlement also requires a third party to audit the privacy programs GM has put in place. [1]
What Smart Driver collected
From 2016 to 2024, GM enrolled millions of drivers in its Smart Driver program, which tracked their driving habits. [2] GM promoted it as a way for drivers to become safer. [2]
The data was detailed, could be tied to individual drivers, and included information about aggressive braking and driving over the speed limit. [2] According to the attorney general's office, GM told drivers it would not share their data with insurers without their express consent. [2]
The investigation found that GM sold the data to brokers under contracts saying it would be used for insurance products. [2] GM did not tell drivers their data would be used by insurers in this way. [2]
How drivers got enrolled
Most drivers were enrolled when they bought their cars, through a single sign-up process shared with GM's OnStar service. [2] The attorney general's office alleges that in many cases dealership employees accepted the terms and conditions for customers without their consent. [2]
Salespeople earned bonuses partly based on OnStar and connected-service enrollments, and dealerships were ranked by enrollment numbers. [2]
The app error
The OnStar app wrongly told more than 370,000 drivers they were not enrolled in Smart Driver while GM was collecting and selling their data. [2] GM later quietly removed the affected drivers from the program without telling them about the error. [2] Their data stayed with brokers and insurance companies. [2]
How we got here
GM ended Smart Driver after The New York Times reported that insurers were using the data to change rates, sometimes raising them. [2] A GM spokesperson said the product was ended in 2024 and that the agreement reinforces steps GM has taken to strengthen its privacy practices. [2]
In January 2025, the Federal Trade Commission proposed an order that would bar GM and OnStar from sharing drivers' geolocation and driving behavior data with consumer reporting agencies for five years. [2] In May, GM agreed to pay California $12.75 million in civil penalties over the sale of OnStar users' data. [2]
California officials said GM made about $20 million nationwide by selling the data between 2020 and 2024 to two brokers. [2] The GM spokesperson said the product was discontinued in 2024 after the California settlement. [2]
What it means for you
If you bought a GM car during the years Smart Driver ran, you may have been enrolled at the dealership, since most drivers were enrolled when they bought their cars. [2] Dealership employees allegedly accepted the terms for customers without their consent in many cases. [2]
The OnStar app wrongly told more than 370,000 drivers they were not enrolled, so an app that says you are not enrolled may not settle the question. [2] Their data stayed with brokers and insurance companies. [2]
Going forward, GM must obtain drivers' affirmative express consent before collecting or sharing their driving and location data. [2] The attorney general's office said the settlement terms are significantly stronger than any other agreement reached with GM over this conduct. [2]
Sources
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