Walking into the dealership to buy a new vehicle, you focus on the price, the warranty, the features, and the financing terms. What most drivers do not focus on is data. However, you might be surprised by the fact that modern vehicles collect detailed information about how you drive, how hard you brake, how fast you accelerate, and even how often you use certain safety features. In many cases, that information does not stay inside the vehicle.
In fact, industry analysts estimate that roughly 90% of new vehicles now gather driving behavior data. Automakers often share or sell that information to third parties, including insurance companies. You may have technically agreed to it, but that agreement is usually buried so deep in purchase documents and digital disclosures that very few buyers have the time or clarity to review line by line.
In fact, industry analysts estimate that roughly 90% of new vehicles now gather driving behavior data. Automakers often share or sell that information to third parties, including insurance companies. You may have technically agreed to it, but that agreement is usually buried so deep in purchase documents and digital disclosures that very few buyers have the time or clarity to review line by line.
What Information Is Being Collected?
Today’s vehicles are equipped with advanced telematics systems. These systems can record:
● Hard braking events
● Rapid acceleration
● Speed patterns
● Use of driver-assistance features
● Mileage and trip details
Automakers say that this data supports safety, diagnostics, and vehicle performance, but consumer advocates and federal regulators have raised a different concern. The Federal Trade Commission warned in 2024 that vehicle data can be sensitive and that its collection and disclosure may affect both privacy and financial well-being. That concern becomes very real when insurance premiums are involved.
● Hard braking events
● Rapid acceleration
● Speed patterns
● Use of driver-assistance features
● Mileage and trip details
Automakers say that this data supports safety, diagnostics, and vehicle performance, but consumer advocates and federal regulators have raised a different concern. The Federal Trade Commission warned in 2024 that vehicle data can be sensitive and that its collection and disclosure may affect both privacy and financial well-being. That concern becomes very real when insurance premiums are involved.
When Driving Data Affects Your Insurance Rates
In one widely reported situation, a driver discovered that his insurer had detailed braking data before he ever signed up for a policy. The information reportedly came from his vehicle’s telemetry system. Months later, his premium significantly increased.
If your vehicle shares driving behavior data with insurers, that data may influence underwriting decisions, renewal rates, or risk scoring. You might never receive a clear explanation linking the two. The issue is not whether automakers can collect data. The issue is whether you were given meaningful notice and a real choice.
If your vehicle shares driving behavior data with insurers, that data may influence underwriting decisions, renewal rates, or risk scoring. You might never receive a clear explanation linking the two. The issue is not whether automakers can collect data. The issue is whether you were given meaningful notice and a real choice.
The Question of Informed Consent
Automakers generally state that consumers provide consent. Legally, consent may exist within purchase agreements or digital acknowledgments. The problem is visibility. When disclosures are buried in lengthy documentation during a high-pressure transaction, most buyers are focused on the cost of the car, not long-term data use. The FTC recently restricted on automaker from selling driving data for five years after determining that consumers were not adequately notified and did not provide clear affirmative consent. There was no fine, but the order signals regulatory scrutiny.
What You Can Do as a South Carolina Driver
You can and should request information from your automaker about what data is being collected and whether it is shared. You can review connected services settings in your vehicle and disable optional data programs. You can also ask your insurer directly whether telematics data influences your rate.
If you believe your data was shared without meaningful consent or that it contributed to unfair insurance practices, you may have consumer protection claims. In South Carolina, deceptive or undisclosed data practices fall into consumer protection territory.
If you believe your data was shared without meaningful consent or that it contributed to unfair insurance practices, you may have consumer protection claims. In South Carolina, deceptive or undisclosed data practices fall into consumer protection territory.
Protecting Your Rights
Vehicles are increasingly connected, and that connectivity carries legal and financial
implications. You deserve transparency about what is being collected, who receives it, and how it may affect you. If you have questions about your rights under SC Lemon Law or potential consumer protection violations tied to vehicle data practices, Steve Moskos can help you explore your options. Contact us today to discuss your situation and determine the next steps forward.
implications. You deserve transparency about what is being collected, who receives it, and how it may affect you. If you have questions about your rights under SC Lemon Law or potential consumer protection violations tied to vehicle data practices, Steve Moskos can help you explore your options. Contact us today to discuss your situation and determine the next steps forward.
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