General Motors announced on Wednesday that it will be discontinuing OnStar Smart Driver, an optional program that provided users with data about their driving habits, across all of its vehicles. This decision comes after complaints arose regarding privacy violations and concerns over how user information was being shared with data analytics companies LexisNexis and Verisk. Smart Driver users will be unenrolled from the program and the software will be removed from GM vehicles.
The New York Times reported that LexisNexis and Verisk shared personal data with insurance companies as part of the Smart Driver program. Some GM vehicle owners were not aware that they had consented to the program or that their insurance rates had increased as a result of it. Detailed information on drivers’ habits, such as rapid accelerations and hard braking, was used to create a risk score for insurance companies to use in developing more personalized insurance coverage, according to LexisNexis spokesman Dean Carney.
Despite being marketed as an optional service, there were users who were unaware that they were signed up for Smart Driver. GM stated that they are working on enhanced privacy controls to provide greater transparency, but did not disclose specifics on how these controls will operate. The Smart Driver program was originally advertised as a way to help drivers reduce wear and tear on their vehicles and promote safer driving habits. It would report data on total miles driven, hard braking incidents, late night drives, and more.
Prior to GM’s announcement to discontinue the program, vehicle owners had begun warning each other on various online forums to disable Smart Driver due to concerns about potential increases in insurance rates linked to the data it collected. The decision to end OnStar Smart Driver highlights the growing concerns surrounding data sharing and privacy in the automotive industry, as more vehicles become connected and collect data on drivers’ behaviors. It also underscores the need for greater transparency and control over how user data is used and shared in these types of programs.
