In a letter to the US Federal Trade Commission late last week, US senators Ron Wade and Edward Markey revealed that car companies Honda and Hyundai sold driver data to Verisk Analytics, a data broker, for a surprisingly small profit.
In the last few months, car manufacturers have come under increased scrutiny regarding their data collection policies and how they obtain consent to share this information with third parties. The investigations revealed that some car manufacturers sold driver information to data brokers, who processed it and sold it to insurance companies.
According to the letter, Honda shared data from 97,000 vehicles with Verisk between 2020 and 2024. Owners who opted into Honda's driver feedback program through the company's mobile app disclosed their data to the analytics company, which paid Honda $25,920 -- or just 26 cents per car.
Hyundai sold significantly more data to Verisk between 2018 and 2024 about consumers who enabled their car's internet connectivity, automatically enrolling those drivers in the automaker's Driving Score program, “without telling them”. according to US senators. The Korean brand has sold data from 1.7 million vehicles for approximately $1 million, or 61 cents per car.
In April, Verisk shut down the product that rates drivers on their driving habits based on data from Internet-connected cars. General Motors also sells data from users enrolled in Verisk's Smart Driver program; however, the company did not disclose the number of cars involved or the amount paid.
The letter also accuses automakers of making misleading claims about the potential outcomes of their respective programs, emphasizing potential rebates instead of possible rate hikes. Wade and Markey asked FTC Chairwoman Lina Kahn to investigate how automakers disclose and share consumer data.
Automakers seem eager to be able to collect your driving data and know more about your driving habits than ever before, but at what cost? Anything with a computer chip, an internet connection, and a sensor or two can collect and transmit data that a company can then share and sell to various third parties, including your insurance company, who can easily recoup what they paid, to get this data with a minimal increase in your insurance policy premium.
Honda responded to a request for comment on the letter with the following:
„With the subscription-based Driver Feedback Program, Honda contracts with Verisk to facilitate a service for Honda customers where, upon explicit opt-in, their driving data is collected and they are given a driving rating , which the customer will receive along with a contextual overview of their driving behavior.
Some users with favorable driving scores are presented with opportunities to opt-in to receive discount offers from specific participating insurance companies. Without this express consent from the customer, no identifiable user information is shared with any insurance company.
„Honda's collection and use of data is done responsibly and in compliance with all applicable privacy laws. Our customers can feel confident that Honda will transparently disclose both the collection and use of data and will always offer our customers a choice regarding the sharing or sale of their personal data. Customer satisfaction is our highest priority.“