GM Agrees to Pay $220 Million Over Alleged Sale of Driver Data to Insurers

General Motors has agreed to pay $220 million to resolve claims by dozens of states that it sold drivers’ location and driving-behavior data to brokers, who then passed it along to insurance companies.

Reuters reported that 35 state attorneys general were included in the agreement, according to Jalopnik. TechCrunch said the number was 36 states.

Allegations Against GM

The dispute centers on GM’s Smart Driver program, which enrolled millions of drivers between 2016 and 2024, when GM ended it. Many of those drivers also used OnStar.

According to the states, GM gathered information on how and where people drove, then sold that data to brokers. Those brokers allegedly resold it to insurers, which used it to set premiums and, in some cases, increase them.

As part of the settlement, GM must restrict the driving data it collects and obtain drivers’ explicit consent before collecting or sharing it. The Drive also reported that an outside party will audit GM’s privacy programs.

GM’s Response and What It Could Mean for Owners

A GM spokesperson told Reuters, “GM is committed to being clear about what information is used, how it’s protected, and the choices customers have about what they share.” The spokesperson said the settlement “reinforces other steps” GM has already taken on privacy.

This is not the company’s first payment tied to the issue. It previously paid $12.75 million to settle a California investigation into sales of driver data to two brokers. It also agreed with the Federal Trade Commission not to share drivers’ geolocation and behavior data with consumer reporting agencies for five years.

It is still unclear whether individual Chevrolet, GMC, Buick, or Cadillac owners will receive any part of the $220 million. Drivers who used OnStar or Smart Driver and later saw their insurance costs rise without a clear reason may want to ask their insurer where its data came from.