GM agrees to pay $220 million to resolve claims it tracked drivers and shared data with insurers

General Motors has agreed to pay $220 million to settle allegations that it shared drivers’ location and driving-behavior data with insurance companies without properly informing them or securing their consent, Illinois Attorney General Kwame Raoul said.

A coalition of 36 attorneys general from both parties alleged that GM monitored millions of drivers through its Smart Driver program from 2016 through 2024. The program is said to have gathered information on driving time, hard braking and acceleration, and speeding, then sold that data to brokers for insurance-related products, potentially influencing premiums.

As part of the deal, GM must get consumers’ affirmative, express consent before collecting or disclosing driving and location data. Illinois is expected to receive about $10.5 million.

“General Motors took advantage of thousands of drivers by collecting sensitive information that then made it into the hands of insurance companies to set insurance rates,” Raoul said. “These actions are unacceptable and could ultimately take more money out of Illinois consumers’ pockets.”

According to state officials, GM marketed Smart Driver as a tool to help motorists improve safety and told customers their information would not be shared with insurers without express consent. But the coalition said GM sold the data to brokers under agreements that specified it would be used for insurance products, without telling drivers that was happening.

State officials said the company used one enrollment process for both Smart Driver and its OnStar services, and many customers signed up at dealerships when buying vehicles. In some instances, dealership employees allegedly accepted the terms and conditions on customers’ behalf without their knowledge or permission.

The coalition also said GM’s systems gave some customers false information about whether they were enrolled. The OnStar app reportedly told more than 370,000 drivers they were not taking part in Smart Driver even though the program was collecting and selling their information. GM later removed those drivers from the program without notifying them of the error, according to the complaint, but the data already collected remained with brokers and insurers.

Under the settlement, GM must create a broad privacy program to limit the driving data it collects and to strengthen safeguards for consumers’ personal information. The company also agreed to monitor and train dealership employees so customers are not enrolled in data-collection programs without consent.

Raoul’s office was joined in the lawsuit by attorneys general from 34 other states and Washington, D.C.