GM to Pay $220 Million to Settle Claims It Sold Driving Habits Data
A coalition of 36 state attorneys general secured a $220 million settlement with General Motors over allegations that the automaker sold drivers' vehicle data to third parties. As part of the agreement, GM must also limit the data it collects and restrict how that information is shared.
Background
The settlement stems from GM's practice of collecting driving behavior data through its OnStar Smart Driver program and telematics systems, then sharing it with data brokers and insurance companies. The data included details such as mileage, speed, braking and acceleration patterns — information that could be used to set insurance rates.
The case gained national attention after reports that some drivers saw their insurance premiums rise unexpectedly, without clear awareness that their vehicle data was being commercialized.
Settlement Terms
Under the agreement reached with the 36 state attorneys general, GM will:
- Pay $220 million across the participating states
- Limit the types of driving data it collects and retains
- Restrict the sharing of driver data with third parties
- Improve disclosure and obtain clearer consent from vehicle owners before data is collected or sold
2026 Context: A Wider Reckoning Over Vehicle Data
The GM settlement arrives amid a broader regulatory push in 2026 to rein in connected-car data practices. Over the past two years, several states have introduced or expanded privacy legislation covering telematics and in-vehicle data, and federal regulators have signaled closer scrutiny of how automakers monetize driver behavior. The settlement is widely seen as a benchmark that could shape how other manufacturers — including Ford, Toyota and Stellantis — structure their data-sharing programs. It also reinforces a growing expectation that consent for vehicle data collection must be explicit, informed and revocable.
What It Means for Drivers
For consumers, the settlement serves as a reminder that modern vehicles generate detailed behavioral profiles. Drivers are encouraged to review their vehicle's connected-services settings, opt out of optional data-sharing programs where available, and monitor any consent screens presented through infotainment systems. GM has said it will continue to support its connected features while aligning its data practices with the new requirements.
The Bottom Line
The $220 million penalty underscores the rising legal and financial stakes of data privacy in the automotive industry. As vehicles become increasingly software-defined, the line between convenience features and commercialized personal data will remain a central battleground for regulators, automakers and consumers alike.
via The Verge