Lawsuits Target Auto Insurers and Carmakers Over Secret Driver Data Collection

The expanding world of vehicle telematics is under legal and public scrutiny as major lawsuits take aim at insurers and automakers accused of collecting driver data without consent. At the center of the controversy is a Florida lawsuit involving a Toyota owner who claims his vehicle shared driving data with Progressive Insurance and its data partner, Connected Analytic Services—without his permission. This case is just one of several, including a high-profile suit filed by the state of Texas against Allstate and Arity, which allegedly gathered behavioral data on millions of Americans via embedded app software.

The core of the debate centers on consumer privacy and the use of vehicle telemetry—systems that can track speed, braking, routes, and even mobile phone usage. While insurers argue that this data helps offer personalized rates and encourages safe driving, critics warn that the lack of transparency and consent exposes drivers to potential misuse, unfair rate hikes, or unauthorized data sales. In many cases, consumers remain unaware that their data is being transmitted and monetized.

Legal experts and cybersecurity professionals emphasize that the issue isn’t just about insurance or technology—it’s about consent. With carmakers, insurers, and third-party brokers all vying for valuable driving data, drivers are often left with limited control over how and where their information is used. The lawsuits highlight the urgent need for clearer regulations and consumer protections in a rapidly digitizing transportation sector.

As connected vehicles become standard, adjusters and other insurance professionals should expect rising public concern and regulatory focus on how data is collected and applied in underwriting, claims decisions, and customer engagement. This evolving legal landscape could reshape how telematics programs are structured and disclosed, and may impact data-sharing partnerships across the industry.