General Motors to pay US$220m over sale of drivers’ data used to raise insurance rates

General Motors is set to pay US$220 million to settle a lawsuit over allegations that it collected and sold customers’ driving data without their knowledge. — AFP pic

First Published: Friday, 30 Oct 2026 1:01 PM MYT

NEW YORK, Oct 30 — General Motors will pay US$220 million to settle litigation over the sale of drivers’ driving data that was then used to raise insurance rates, New York’s attorney general said today.

The payments resolves a suit brought by New York and 35 other states alleging GM shared the data of drivers enrolled in its Smart Driver program despite saying it would not be given to insurers without express consent, James’s office said in a press release.

The program tracked actions such as sudden braking and whether drivers exceeded the speed limit. GM sold the data to data bankers who sold the info to insurers, who in some cases lifted premiums by significant levels, according to the press release.

“General Motors collected data on their customers’ personal driving habits without their knowledge and then sold it, potentially affecting their insurance rates,” James said. “Today, we are putting a stop to this illegal violation of drivers’ privacy.”

The case is part of a series of investigations and lawsuits over a GM program the automaker has ended.

GM in January 2025 reached a settlement with the US Federal Trade Commission over allegations it improperly collected and sold consumer data that could be used to set insurance rates.

GM announced in April 2024 that it was discontinuing the program, describing the move as a response to consumer feedback. It also announced the appointment of a new Chief Trust and Privacy Officer.

GM said in an October 2026 securities filing that it set aside US$500 million in connection with investigations and litigation on the matter. — AFP