Last Updated on August 11, 2026
Written by licensed insurance agent Andy walker
Reviewed by the Alias Insurance editorial team.
A connected car can share driving data through its mobile link, a carmaker app, an insurer’s tracking plan, or a data firm. Car sensors may log miles, speed, hard stops, fast starts, sharp turns, trip times, place, phone use, and airbag events. The car or a linked phone sends the records to a server. Data may then go to an insurer or a consumer reporting firm.
Not every connected car sends data to an insurance firm. A mobile link does not prove that an insurer gets the records. Sharing depends on the car, service, app settings, consent, partners, state rules, and insurance plan. An insurer’s phone app may also track trips when the car sends nothing.
An insurer may use allowed data to set a driving score, confirm miles, price a tracking plan, review a crash, or spot fraud. The result may earn a discount. It may also cut a discount or affect price where plan and state rules allow. Ask what is tracked, who gets it, how long it stays, and whether it can raise your rate.
The NAIC says usage-based insurance may track miles, time, place, fast starts, hard stops, sharp turns, phone use, and airbags. Its effect on price depends on the insurer and state law. Read the NAIC guide to usage-based insurance.
| Basic question | Short answer |
| Does every connected car share with insurers? | No. The service, consent, partners, and state rules control access. |
| How does data leave the car? | A built-in modem or phone app sends it to a remote server. |
| Can it affect a rate? | Yes, in some tracking plans and states. The effect varies by plan. |
| Can a data firm be involved? | Yes. A reporting firm may supply a driving report to an insurer. |
| Can you opt out? | Often, but the steps and effect on car services vary. |
What Counts as a Connected Car?
A connected car can send or receive data. It may use a mobile modem, Wi-Fi, Bluetooth, or a linked phone. Common tools include road help, crash calls, remote start, theft help, maps, car checks, and software updates.
The same link may also send car-use data. Some services collect only car health records. Others log place and driving style.
Three systems are often confused:
- Built-in car service: The carmaker runs the modem, app, and account.
- Insurance tracking plan: The driver joins a plan run by an insurer or vendor. It may use the car, a plug-in device, or a phone.
- Event data recorder: The EDR stores a short set of crash facts. It is not a trip tracker.
Read more about insurer-run tracking in this guide to telematics car insurance.
How Does Driving Data Travel From Your Car to an Insurer?
The path can be direct or indirect. A common data flow has five steps.
Step 1: Sensors record an event
Cars have sensors for speed, brakes, steering, engine status, and airbags. A linked service may turn some signals into trip records. A phone can add motion, GPS, and phone-use data.
Step 2: A car or phone sends the record
A modem may send data through a mobile network. An insurer’s app may use the driver’s phone. A plug-in device can send a smaller set of signals.
Step 3: A server links data to an account
The carmaker, insurer, or vendor may match a record to a car, app account, or plan. A VIN, device ID, phone account, or policy number can make the match.
Step 4: A score or report is made
Trip records may become a score. It can weigh miles, hard stops, speed, night trips, or phone use. Each plan has its own rules. Ask which events caused a low score.
Step 5: The insurer receives data or a result
The insurer may get raw events, a short report, or only a score. The source may be its app, a carmaker, a vendor, or a reporting firm. The consent terms should explain the path.
The CFPB says LexisNexis reports driving behavior data through Telematics OnDemand for auto insurance pricing. Its list tells drivers how to seek a report and dispute an error. See the CFPB list of consumer reporting firms.
What Driving Data Can a Connected Car Collect?
The driver
The clearest path starts when a driver joins a tracking plan. The consent screen should name the data, purpose, and price effect. The driver may link a carmaker account, install an app, or use a plug-in device.
The automaker or connected-service unit
A carmaker may collect data for safety, maps, car health, remote tools, or research. Its terms may allow vendor or partner access. Ask whether the driver gave clear consent for insurance use.
A data or consumer reporting firm
A data firm may receive records, build a report, and sell it to an insurer for a lawful use. This path can be hard to see because the insurer gets a report, not a feed from the car.
A phone app
An insurer app can track trips without a car modem. It may use GPS, phone motion, Bluetooth, and phone use. Errors can arise if it gives a passenger’s trip to the wrong driver.
What Did U.S. Regulators Find About Connected-Car Data?
The General Motors and OnStar case shows an indirect path. In January 2026, the FTC finalized an order tied to claims that GM and OnStar sold exact place and driving data without informed consent. The FTC said reporting firms put the data in reports used to deny cover or set rates.
The order placed a five-year ban on sharing covered place and driving data with reporting firms. It also calls for consent, data access, deletion, and ways to limit some collection. The case does not prove that every carmaker acts the same way. It shows why drivers should check car settings and outside reports. Read the FTC final order announcement.
California announced a separate $12.75 million settlement with GM in May 2026. The state said GM sold names, contact data, place, and driving records for hundreds of thousands of Californians from 2020 through 2024. The Attorney General said two data buyers paid GM about $20 million across the U.S.
The state said California insurers did not order those reports for state drivers. Its rules bar this type of data from rate setting. Other states may treat tracking data in a different way. Review the California Attorney General’s connected-car settlement.
How Can Driving Data Affect Your Car Insurance Price?
A safe-driving discount
Some plans start with a sign-up discount. Later savings may depend on miles and driving events. A smooth, low-mileage driver may earn more savings under the plan rules.
A lower pay-per-mile bill
A plan may charge a base amount plus a cost per mile. The car or app sends a trip total. It may fit a person who drives far less than most. Learn how pay-per-mile car insurance differs from driving-score plans.
A smaller discount or higher price
Some plans only change a discount. Others may allow a surcharge or rate change. State rules and filed terms matter. Ask for the best and worst result before joining.
A change at renewal
An insurer may use an allowed score at renewal. If the price changes, ask why. Driving data may be one factor among miles, claims, tickets, car type, ZIP code, and limits. Review the main factors that affect car insurance rates.
A claim review
Crash data may help confirm time, speed, brakes, airbags, or impact. It may aid a review, but it does not replace the policy, photos, police report, witness facts, or claim rules.
What Are the Main Benefits and Risks?
| Possible benefit | Possible risk |
| A discount for low miles or safer patterns | A smaller discount or higher price in some plans |
| Feedback about hard stops or phone use | A false event caused by traffic, road design, or phone error |
| Faster crash notice or road help | Location can expose private habits |
| A mileage-based bill for a low-use car | Shared-car or passenger trips may be assigned wrongly |
| Data that supports a claim review | A score may be hard to explain or correct |
No result is promised. A tracking plan may help one driver and offer little value to another. Read the price, data, and opt-out terms before joining.
How Can You Check Whether Your Car Shares Driving Data?
- Open the car’s data menu. Look for Connected Services, Driving Score, Smart Driver, Insurance, Data Sharing, or Location.
- Check the carmaker app. Review consent, linked services, partners, and data requests.
- Read the data notice. Search for insurance, reports, driving behavior, sale, sharing, and exact place.
- Ask the insurer in writing. Ask if it gets data from a car, phone, vendor, or report.
- Request your reports. CFPB lists firms that make reports for auto insurance.
- Review rate notices. A notice may name the data firm.
- Check each driver’s phone. A family member may have linked the car.
The Fair Credit Reporting Act lets drivers dispute report data that is wrong or not complete. The report firm must review the dispute for free. See CFPB instructions for LexisNexis report disputes.
How Can You Limit or Stop Data Sharing?
Start with the car and app settings. Turn off an insurance-sharing tool that you did not mean to join. Remove links between the car account and insurer. End app access to GPS, motion, or Bluetooth if you left the plan.
Next, contact the carmaker and insurer. Ask for your data, a list of firms that got it, an opt-out, and deletion where those rights apply. Save the reply. State data rights differ, so check your state attorney general or privacy office.
Learn what else will stop before you shut off a service. One setting may support crash calls, theft help, road help, remote start, or software updates. Ask for separate controls for insurance sharing and safety tools.
Before you sell or return a car, remove paired phones, contacts, map logs, garage codes, app access, and saved accounts. The FTC also tells drivers to clear personal data before a sale. Read the FTC guidance on cars and consumer data.
Is Event Data Recorder Information Shared the Same Way?
Usually not. An event data recorder, or EDR, stores a short set of crash facts. It is not a service that sends each trip to a remote server.
Federal law states that EDR data belongs to the car owner or lessee. Access needs consent or a listed legal, safety, or emergency basis. State laws may add rules. See the event recorder section of the U.S. Code.
An insurer may ask for EDR data after a major crash. Ask who will download it, what it holds, and how it may affect the claim. Legal help may be wise when injuries or a large dispute are involved.
What Should You Do if the Data Is Wrong?
Request the full report and trip details. Mark each wrong date, car, driver, route, or event. Send a written dispute to the report firm and data source. Save copies and proof of delivery.
Ask the insurer to review the price after the record is fixed. If it will not explain the result, call your state insurance department. A data complaint may also go to the FTC or state attorney general.
Keep proof until the dispute ends. Save app screens, consent text, policy notices, reports, emails, and rate letters.
Frequently Asked Questions
Yes, but access is not automatic. An insurer may get data after you join its tracking plan. It may also get a report from a carmaker, vendor, or report firm. Consent, state rules, and settings affect the path.
Check the car’s data menu and carmaker app. Look for driving score, insurance, GPS, linked services, and sharing choices. Read the notice and ask which firms got your driving data.
Many services offer an opt-out or a way to end an insurance link. Steps differ by car and plan. Ask if the change also stops crash calls, road help, theft help, or software updates.
It can in some plans and states. One plan may only change a discount. Another may allow a surcharge or renewal change. Read the terms and ask for the highest price effect before you join.
Yes, when a report firm holds the data. You may request your file and dispute errors under the Fair Credit Reporting Act. The steps can differ for data held only by a carmaker or insurer.
An EDR stores a short set of crash facts. It is not live trip tracking. An insurer may seek its data after a crash, subject to consent and federal or state rules.
Final Takeaway
A connected car can send data through a carmaker service, insurance app, plug-in device, phone, vendor, or report firm. The data may affect a discount, mileage bill, renewal, or claim where rules allow. Check consent, settings, reports, and state rules. Ask a licensed insurer to explain any score or price change. Alias Insurance encourages drivers to compare equal limits and data terms before choosing a tracking-based policy.
Sources and References
- Federal Trade Commission: Final General Motors and OnStar Order
- California Attorney General: General Motors Connected-Car Settlement
- Consumer Financial Protection Bureau: Consumer Reporting Companies List
- Consumer Financial Protection Bureau: LexisNexis Report and Dispute Information
- National Association of Insurance Commissioners: Usage-Based Insurance
- National Association of Insurance Commissioners: Telematics
- Federal Trade Commission: Cars and Consumer Data
- U.S. Code: Event Data Recorder Ownership and Access
