As cars become increasingly connected, legislators and experts nationwide are voicing growing concerns. They worry about how much data car manufacturers and insurance companies can access and use. 

Texas Attorney General Ken Paxton, a Republican, filed a lawsuit Monday against Allstate. Allstate is one of the largest publicly traded insurance companies in the U.S. 

The lawsuit accuses the insurer of unlawfully collecting, using, and selling more than 45 million consumers’ driving data nationwide. This was done without their consent. The data was used to justify higher car insurance premiums.

This lawsuit follows a series of investigations and reports by InvestigateTV. These investigations uncovered the privacy risks of data collection in the auto industry. Experts and lawmakers have raised concerns about the information vehicles can gather on drivers. They worry about the potential implications for consumer privacy.

InvestigateTV examined the privacy policies of 14 major automakers. They explored their practices around collecting operator data. This data includes geolocation and driving habits. They investigated whether this information is being shared or sold to insurance companies. Consumers have filed complaints with the Consumer Financial Protection Bureau. These complaints concern potential leaks of personal data and driving habits.

Ryan Bates learned that his 2023 electric vehicle was collecting personal data. He discovered this when he obtained his personal report. He said he had no way of knowing whether this information was being shared with his insurance company. 

“Have they given it to my insurance company? I don’t know. There’s no way to know,” Bates said.

This legal action follows a similar suit Paxton filed in August against General Motors. He accused the automaker of unlawfully collecting drivers’ private data. The data was sold to multiple companies, including insurance firms. This case arises from an investigation. The Texas Attorney General’s office launched this in June to examine the data practices of car manufacturers.

Paxton claims the data collection violates the Texas Data Privacy and Security Act, which took effect in July of 2024. This law prohibits companies from selling users’ precise geolocation data without first obtaining explicit consent.

Allstate never notified Texans about collecting their sensitive data. They also did not obtain their consent to sell that data, according to a press release from Paxton’s office. “This is the first enforcement action ever filed by a state attorney general to enforce a comprehensive data privacy law.”

InvestigateTV reached out to Allstate for comment. In its response, Allstate Corporation stated:“Arity helps consumers get the most accurate auto insurance price. This is possible after they consent in a simple and transparent way. This process fully complies with all laws and regulations.”

While InvestigateTV asked for more details about Arity’s consent practices, the company did not provide further details. However, Allstate’s website acknowledges that it collects data from mobile devices, including geolocation and driving behaviors through apps. Arity also states that consumers have the right to request specific personal information it has collected. They can also ask for that data to be deleted.

Seeing this is a little concerning to me. My insurance provider collects my vehicle’s data by my choosing to help reduce my insurance rates, which has been very beneficial.

Now whether they’re selling my data or not is a different story. I would have to do some deep research on that. But if my data is being sold to other insurance companies, at least it’s all good information. After using the onboard tracking device with my insurance for the last 4 months of my premium.

I received a 39.5% discount per month! That makes a good driver and their bank account happy.

I can see every single trip I make 20 to 30 minutes after the trip, and the app will show my score and details for that trip.

But if I was unaware of the tracking and I was not signed up for any such thing. I would definitely be pretty upset!