Your Car Is Sharing Your Data—and It Could Be Affecting Your Insurance Rates
Modern vehicles are increasingly connected, collecting vast amounts of data about your driving habits. While this technology offers convenience and potential safety benefits, it also raises significant privacy concerns. A growing number of lawsuits and regulatory actions are highlighting how this data is being collected, shared with third parties—like insurance companies—and potentially used to increase your insurance premiums.
How Your Driving Data Is Being Collected
Approximately 90% of new cars on the road today are equipped with telematics systems capable of tracking detailed driving information 1. This data can include location, speed, direction, braking habits, and even instances of swerving or hard cornering. This information is often collected through a vehicle’s built-in telematics device, or through smartphone apps connected to the vehicle.
The Toyota and Progressive Lawsuit
Philip Siefke, a Florida resident, discovered the extent of this data collection firsthand. After purchasing a 2021 Toyota RAV4 XLE 1, he attempted to sign up for Progressive insurance in January 2025. Despite opting out of Progressive’s Snapshot data-sharing program during the online sign-up process, he was informed that Progressive already possessed his driving data 1. A Progressive representative explained that the data came from the tracking technology installed in his Toyota.
Siefke’s insurance rate subsequently increased from under $300 per month to over $400 after just six months 3. He alleges that Toyota shared his driving data with Connected Analytic Services (CAS), which then provided it to Progressive 1. Siefke is pursuing legal action against Toyota, Progressive Casualty Insurance Company, and Connected Analytic Services (CAS) 1.
Arbitration Ruling
While Siefke initially sought to sue Toyota directly, a court ruled that the dispute must go to arbitration based on agreements he signed when downloading Toyota’s app 4. This means a neutral arbitrator will review the case instead of a judge and jury.
FTC Concerns and Regulatory Action
The Federal Trade Commission (FTC) has expressed concerns about the privacy implications of vehicle data collection, warning that cars are becoming “powerful data-gobbling machines” 1. In 2024, the FTC prohibited General Motors from selling driving data for five years, although GM stated it had already ceased the practice a year prior.
What This Means for Drivers
The Siefke case and the FTC’s actions highlight the need for greater transparency and control over vehicle data. Drivers may unknowingly be agreeing to share their data when purchasing a vehicle or using connected services. This data can then be used to assess risk and potentially increase insurance rates.
Key Takeaways
- Modern cars collect extensive driving data.
- This data is often shared with third parties, including insurance companies.
- Data sharing can potentially lead to higher insurance premiums.
- The FTC is scrutinizing vehicle data collection practices.
- Arbitration agreements may limit drivers’ ability to sue over data sharing.
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