Florida Man Sues GM and LexisNexis Over Telematics Insurance Data Collection

According to a NY Times report, last December Romeo Chicco faced rejection from seven insurance providers before finally securing a policy at nearly twice his former rate. A recent legal filing seeking to establish a class action claims the giant jump in premiums was linked to his 2021 Cadillac XT6’s invasive data tracking. And, as reported in Insurance Business earlier this week, Chicco isn’t the only policyholder complaining to the Times.

Dubbed by some as “smartphones on wheels”, many modern vehicles are internet-connected and equipped with various sensors and cameras. These sensors can, in some cases send telematics data back to the manufacturer, and from there the data can be sold to carriers. This telematics market is dominated by US-based Progressive, Allstate, Liberty Mutual, Nationwide and State Farm. At the end of 2022 there were 16.8 million telematics policies in the country – and growing at a CAGR of 11.7%, that number is predicted to reach almost 30 million by 2027.

Chicco claims that he had no idea that his car was telling anyone about his premium-increasing driving habits until learned from a Liberty Mutual representative that his insurance application was declined due to findings in his “LexisNexis report”.

Read the source article at Insurance Business