September 24, 2024 | by Unboxify
Welcome to the age of the data-driven car. Car companies are collecting extensive data from your vehicle, ranging from your driving habits to highly personal information. If you’ve ever wondered why your insurance premiums are skyrocketing without apparent cause, the answer might lie in the data harvested from your car.
Cars today are much more than vehicles; they are complex computers on wheels. Here’s a brief look at the type of data being collected:
Unbelievably, some car companies even record and sell this data to third parties including insurance companies, leading to higher premiums.
On June 8th, 2024, Brian was driving his 2023 Toyota Corolla GR when it caught fire. The car was just one year old, and the damage should have been covered by warranty. However, Toyota denied his claim. Why?
The data collected from the car indicated that Brian had driven over 85 mph at some point, despite this having nothing to do with the fire. This scenario illustrates how data collected can be used to deny rightful claims.
In 2023, the Mozilla Foundation reviewed the privacy standards of 25 major car brands, and every single one failed. Brands like BMW, Ford, Toyota, Tesla, Kia, and Subaru were involved in collecting incredibly sensitive and personal data.
Data is amassed through:
The raw data from your car doesn’t just sit idle; it is sold to data brokers who then pass it on to insurance companies. Here’s how the pipeline works:
The New York Times reported the case of Ken Dal, a 65-year-old cautious driver who saw his insurance premium spike by 21% due to a bad report from Lexus Nexus. He was shocked to learn that the report was over 130 pages long, detailing every trip he and his wife had made.
Data collection practices raise important questions about consumer rights and transparency. Critics argue that hidden clauses in contracts are insufficient for consumer protection. California’s privacy regulator, Senator Edward Mar, called for investigations into these practices, suggesting they may violate consumer protection laws.
To be fair, driver data can be used for beneficial purposes. Some examples:
However, the potential for misuse is massive, and customers need to balance these benefits against the risks.
As a society, we need to grapple with how important our data is. Data harvesting in the auto industry is a significant concern that requires more robust consumer protections. It’s essential that drivers know what data is being collected, how it is used, and have the option to opt-out if they choose.Driving cars that are no longer offline brings complex challenges, and it’s high time consumers are given back control over their data.
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