So, in this day and age, the fancy-schmancy tech in cars is not just making our driving experience better but also shaking up how we pay for car insurance. These days, lots of car companies are throwing in super advanced telematics systems in their vehicles.
These systems do lots of cool things, like keeping us safe and analyzing a ton of data. And get this – they can also have a big effect on how much we pay for insurance based on how we drive. So, let’s dig into how this tech works and find out which cars have these fancy systems.
The Unexpected Cost of Tech in Cars
![tech, telematics, insurance rates. EXETER, UNITED KINGDOM - APRIL 13: Electric cars including Teslas recharge at a charging area of a motorway service station on April 13, 2024 in Exeter, England. The European Union plans to ban all new sales of carbon-emitting petrol and diesel cars by 2035. Originally the UK planned to ban the sale of new petrol and diesel cars in Britain will by 2030, however this has recently put back still further. Critics of the laws have expressed concern that many internal combustion engined carbon polluting cars, lorries and vans will be still on the roads long after the ban on their sale. (Photo by Matt Cardy/Getty Images)](https://totalapexentertainment.com/wp-content/uploads/2024/05/gettyimages-2148635942-612x612-1.jpg)
Imagine discovering that your car insurance premiums have skyrocketed by 80%. This was the startling reality for one driver who, seeking answers, requested his LexisNexis consumer disclosure report. What he found was eye-opening: his vehicle’s OnStar system had meticulously logged his every move, from acceleration patterns to high-speed events and hard braking.
Even more alarming, General Motors (GM) had shared 603 of these detailed records with data brokers, directly contributing to the steep hike in his insurance costs.
LexisNexis argues that telematics-based insurance programs are beneficial, helping drivers improve their habits and reduce risk. However, the reality for many is a steep increase in insurance costs without explicit consent. Recently, General Motors took a step back, severing ties with two data brokers and emphasizing the importance of customer trust and privacy.
The revelation came just as a proposed class action lawsuit surfaced, highlighting similar grievances among other drivers. This lawsuit, filed precisely one day after their report, echoes the concerns of countless consumers who are unwittingly paying a premium for their so-called bad driving.
Vehicles Equipped with Data-Driven Tech
![tech, telematics, insurance rates. BRUSSELS, BELGIUM - JANUARY 9: DS 3 Crossback crossover SUV on display at Brussels Expo on January 9, 2020 in Brussels, Belgium. DS Automobiles is the luxury car division of Citroën. The car is equipped with a large digital dashboard and touch screen on the centre console. (Photo by Sjoerd van der Wal/Getty Images)](https://totalapexentertainment.com/wp-content/uploads/2024/05/gettyimages-1199640800-612x612-2.jpg)
Telematics systems gather a wide range of information from vehicles, which includes speed, location, and driving behaviors like sudden braking and fast acceleration. Insurance companies find this data extremely valuable as they are adopting user-based insurance models. These models provide customized premiums based on how, when, and where people drive.
Several automakers are at the forefront of integrating these telematics systems into their vehicles, each offering their own versions of connectivity and monitoring services:
- General Motors (OnStar): GM vehicles, including Chevrolet, GMC, Cadillac, and Buick, are equipped with OnStar, which can monitor your driving behavior and provide data directly to insurance providers.
- Ford (FordPass Connect): Many newer Ford models include FordPass Connect, enabling data collection on driving habits that can be used for insurance adjustments.
- Toyota (Safety Connect): Toyota’s Safety Connect system offers emergency assistance and a vehicle locator service, which also collects data pertinent to insurance companies.
- Honda (HondaLink): HondaLink provides a suite of connected services, some of which involve monitoring vehicle status and driver behavior.
- Hyundai (Blue Link): Hyundai’s Blue Link system offers comprehensive features that track vehicle use, which can be accessed by insurance companies for evaluating driving patterns.
- Kia (UVO): Similar to Hyundai, Kia’s UVO technology gathers data that can influence insurance premium calculations based on driver behavior.
- Tesla: Known for their cutting-edge technology, Tesla vehicles collect detailed driving data used to support Tesla’s own insurance offerings, emphasizing safety and driving efficiency.
- Mercedes-Benz (Mercedes me connect): Mercedes me connect enhances driving experience while also tracking driving behavior, which can be crucial for insurance purposes.
Request Your Telematics Report from LexisNexis
![tech, telematics, insurance rates. A fourth-grade student uses his laptop computer at Sakiyama elementary school in Tamba, Hyogo Prefecture, Japan, on Friday, March 15, 2024. Prime Minister Fumio Kishida has pledged around $23.5 billion to reverse Japan's falling birthrate, but previous efforts to incentivize having children have fallen flat. Photographer: Buddhika Weerasinghe/Bloomberg via Getty Images](https://totalapexentertainment.com/wp-content/uploads/2024/05/gettyimages-2113298290-612x612-1.jpg)
Patrick Olson, Editor-in-Chief of Carfax, advises caution: “If you own a vehicle equipped with systems like OnStar, or those from Honda, Hyundai, and Kia, which are known to collect data, make sure to verify that your information isn’t being sold to third parties.”
This advice comes in the wake of laws that are yet to catch up with the rapid advancements in car safety and privacy technologies. If you’re worried about how tech in cars affects your privacy, it’s important to know exactly how your data is being used and shared.
You can reach out to your car company or insurance provider to learn more, or you can take the initiative and ask LexisNexis for your consumer disclosure report. This way, you can see what information is being collected and how it’s being used, giving you the chance to protect your privacy and address any issues.
Remember, if you want to keep your privacy intact and make sure you don’t end up paying an arm and a leg for car insurance, you have to know your stuff. It’s kind of a big deal, you know? So be smart and educate yourself. Trust me, it’ll be worth it in the long run.
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