Ask Onix
Connected cars: A growing privacy concern
Today's vehicles collect vast amounts of personal data, from driving habits to biometric details, raising concerns about privacy and financial implications for drivers.
The scope of data collection
Modern cars, equipped with internet connectivity and an array of sensors, track far more than just location. Automakers gather data on driving behavior-such as speed, braking patterns, and seatbelt usage-as well as more intimate details like weight, facial expressions, and even passenger identities. Internal cameras in some models monitor drivers for behaviors like nose-picking or signs of fatigue.
Darrell West, a senior fellow at the Brookings Institution, notes that the sheer volume of data points collected allows companies to reconstruct a driver's life "almost on a second-by-second basis."
Financial and privacy risks
One of the most immediate consequences of this data collection is its impact on insurance premiums. Insurers purchase driving data from automakers and data brokers to adjust rates, sometimes resulting in higher costs for drivers. A New York Times report highlighted a case where a driver's insurance increased by 21% after his vehicle data, detailing every trip over six months, was sold to a data broker.
General Motors (GM) faced legal action for allegedly selling location data without consent, while U.S. senators have accused Honda and Hyundai of similar practices. Despite regulatory interventions, such as the Federal Trade Commission's five-year ban on GM selling vehicle data, the broader industry continues to profit from these practices.
"They're taking all the information they collect on you... and using it to make inferences about who you are, how intelligent you are, what your psychological profile is, what your political beliefs are,"
Jen Caltrider, Privacy Analyst, Mozilla
Legal loopholes and industry practices
Automakers justify data collection through lengthy privacy policies, which most drivers accept without reading. In the U.S., the lack of federal privacy laws means companies operate with minimal oversight. While some states offer protections, enforcement is inconsistent. Europe provides stronger safeguards, including the right to access and delete personal data, but compliance remains a challenge.
A 2023 Mozilla Foundation analysis of 25 car brands found that all failed to meet basic privacy and security standards. Kia's privacy policy, for example, includes provisions for collecting sensitive data like health information and "sex life," though the company claims it does not actively gather such details.
New regulations and future concerns
Upcoming U.S. regulations will require new vehicles to include "advanced impaired-driving prevention technology," such as infrared cameras to detect drunk or fatigued drivers. While aimed at improving road safety, the law includes no provisions for protecting the biometric data collected, raising concerns about its potential misuse.
"So many of the data-collecting advances we see in cars are done under the guise of safety," Caltrider warns. "It could hand the auto industry a trove of what amounts to medical information with no safeguards in place."
Steps to protect your privacy
While drivers cannot entirely opt out of data collection, experts recommend several measures to limit exposure:
- Avoid enrolling in insurance telematics programs, which monitor driving in exchange for potential discounts but carry significant privacy risks.
- In regions with data protection laws, request copies of collected data and opt out of sharing or selling it.
- Adjust privacy settings in the vehicle's infotainment system or companion apps to restrict data collection.
- Consult resources like Consumer Reports for detailed guidance on managing vehicle data.
Michael DeLong of the Consumer Federation of America emphasizes that systemic change is needed. "Until we own our data and control it, this issue will keep getting worse," he says.
