Automakers Share Drivers’ Data With Insurance Companies
By Kashmir Hill
Published March 11, 2024
Updated March 13, 2024
Kenn Dahl, a meticulous driver and owner of a software company near Seattle, leases a Chevrolet Bolt. In 2022, he was surprised to see his car insurance jump by 21 percent. Other insurance companies also provided high quotes. An insurance agent pointed to his LexisNexis report as a contributing factor.
LexisNexis is a New York-based global data broker with a “Risk Solutions” division that caters to the auto insurance industry. They have traditionally kept tabs on car accidents and tickets. Upon Mr. Dahl’s request, LexisNexis sent him a 258-page “consumer disclosure report,” as required by the Fair Credit Reporting Act.
The report detailed over 130 pages of driving data for Mr. Dahl and his wife. It included the dates of 640 trips over six months, start and end times, distance, speeding incidents, hard braking, and sharp acceleration occurrences. The only thing missing was where they drove.
For instance, one Thursday morning in June, the car traveled 7.33 miles in 18 minutes, with two rapid accelerations and two instances of hard braking, according to the report.
According to the report, General Motors provided the trip details, the manufacturer of the Chevy Bolt. LexisNexis analyzed the data to create a risk score “for insurers to use as one factor of many to create more personalized insurance coverage,” according to Dean Carney, a LexisNexis spokesman. Eight insurance companies requested information about Mr. Dahl from LexisNexis during the previous month.
