GM to pay $220 million over selling drivers' data without consent

General Motors has agreed to pay $220 million to settle a lawsuit over selling drivers' data without their consent. Ohio will get about $8 million of that. The data, which showed how people drive, ended up with insurance companies, which used it to raise prices or deny coverage.

What happened

Ohio joined 34 other states and Washington, D.C. in suing GM. The case centered on Smart Driver, a program run by OnStar, GM's subsidiary. It was first pitched as a way for drivers to watch their own driving habits through a smartphone app.

In 2024, the New York Times revealed that GM had been sending driver behavior data to LexisNexis, a company that sends reports to insurers. Insurers then adjusted premiums or denied coverage based on a person's data. GM ended the Smart Driver product in 2024.

The enrollment problem

Ohio Attorney General Andy Wilson said the OnStar app told 380,000 Ohio drivers they were not enrolled in the data collection program. They were enrolled. In his words, "GM broke consumers trust by selling such data without their knowledge and consent."

What GM must do now

Attorneys announced the $220 million settlement in late October. GM also agreed to limit and protect the driving data it collects. The settlement requires third-party data protection assessments, which means outside reviewers will check how GM handles that information.

Earlier this year, the FTC also took action. It banned GM for five years from sharing driver location and behavior data with consumer reporting agencies. It also required GM to get clear, express consent before collecting or using data. GM must make it easier for people to opt out and to delete data already collected.

What is not clear

The material does not say whether individual drivers will receive any payment. It also does not say how many people saw higher insurance prices or lost coverage because of the data.

What to do

• Check the privacy settings in any app tied to your car.
• Look for options that share driving behavior or location.
• Use opt-out and delete tools if the app offers them.