Driving up insurance costs: How carmakers share driving behavior data with insurance companies

Theresa Payton, Fortalice Solutions CEO and former White House Chief Information Officer, joins 'Squawk Box' to discuss news of insurance companies buying data from third party brokers using connected features in cars to track a driver's driving habits, how insurers use that data to set insurance premiums, what it means for data privacy concerns, and more.

[michaeltoma]

We need laws to protect our own data from being monetized in ways that we aren’t aware of or don’t benefit from. Not to mention the lack of protection of data

[tvm]

By the way this information can be gleaned from other sources like your phone or smart watch. So don’t think you will be safe by turn it off at your car.
There is a need for legislation to prevent businesses from using personally identifiable data, whatever be the source.

[dquan]

The govt needs to create a central database that allows US users to set a profile and setup their data usage permissions. All businesses must connect and to this database and follow the settings. Any violations should be heavily punished financially. Problem solved.

[smahmood]

I love when these programs state your insurance may also decrease 😂

[roysills]

We need a constitutional ammendment on privacy in the usa, that our privacy can not be violated by anyone, whatsoever without our informed consent.

[FireEverLiving]

I must be the only person on Earth who read the privacy policy after buying my GM vehicle, saw that they clearly say that they plan to sell your data, and called the phone number to opt out.

[serg]

They should cover how rates r up for the increased risk of uninsured drivers the last 2 years yea how do you sue someone who has no ID or SSN?

[jestan]

My car insurance policy went up by $480 a year all of the sudden, I called them and they told me "it's due to current changes to bla, bla, bla, this, that, and the other.." My policy is over 10 years old.. Past claims I made was always people hitting me and proven to be not my fault. The last one was my 2020 SUV getting rear ended while parked in front of my house by a drugged up guy whom fell asleep on the wheel of his 1993 hooptie... The one before that a few years ago was an elderly lady whom turned left against her red light because her GPS told her to and t-boned me but not before she hit another car first totaling it. I now had to raise my deductible to be able to afford driving legally and keep my car on the road in one piece.

[tvm]

If data is available then businesses will use it to improve their margins!!

[ashresearcher]

Insurance companies can use this data to make you look more risky than you really are and make more money off you by charging more though your risk to them isn’t as high as they claim. Just because you drove above the speed limit on an empty road doesn’t mean you’re a riskier driver

[wd]

I moved to New Hampshire for the main reason of they don't require you to have car insurance and now I can afford to live.

[mike]

Any car company that shares info on how fast I drive will never have my business - period.

[geraldbrowne]

WOW. This need to stop. Uh oh. Tech is in trouble

[ronaldacarter]

Are the cellphone carriers also selling your driving speeds, acceleration and braking rates, etc to your vehicle insurance companies because cellphone location tracking gathers the same information?

[cozyslor]

This relates to Gen AI using other people's work in their data collection. Also, EZ Pass has the ability to track your average speed from when you entered to when you exited (assuming you didn't stop to take a leak). But they realize that less people would use EZ Pass if their speed was being tracked and enforced.

[coreytrevor]

Suddenly my 2009 bare bones ford ranger looks stealthy. Think I’ll keep it

[aw-]

Insurance needs to collect data on following distance and phone usage. Too many idiots running into the backs of cars. Already happened to me 3 times.

[GreggyMcfly]

That is going to make me want to baby my 2010 Elantra.

[Anonymous-pmjf]

Look up Mazda's Telematics Control Unit (TCU)

[downup]

As I recall this was just GM doing this correct? And they also stopped doing it when this came to lite several months back.