Michigan gets $7.2M in GM settlement over claims its cars fed drivers’ data to insurers
Michigan gets $7.2M in GM settlement over claims its cars fed drivers’ data to insurers
Brad LaPlante Fri, October 30, 2026 at 12:52 AM UTC
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LANSING, Mich. (WLNS) — General Motors Co. will pay $220 million to settle allegations that it sold drivers’ private driving and location data without their consent, brought by Michigan, 34 other states and Washington, D.C.
Michigan will get about $7.2 million. The attorneys general announced the agreement Thursday. GM did not admit wrongdoing as part of the settlement.
The states, led by Oregon and Washington, allege GM enrolled millions of drivers in its Smart Driver program from 2016 to 2024 and sold the data to data brokers, who then sold it to insurance companies. Insurers could then change a driver’s premium based on how they drove, the attorneys general said.
The states also allege the OnStar app told more than 370,000 drivers they were not enrolled in Smart Driver when they were, while GM kept collecting and selling their data.
“This settlement will hold GM accountable for its past conduct,” Michigan Attorney General Dana Nessel said in a statement, adding that it will “secure meaningful safeguards so drivers have greater control over their information in the future.”
A spokesperson for General Motors told 6 News the settlement reinforces steps the company has taken to strengthen privacy.
"Safer, more helpful and personalized experiences are enabled by connected vehicle data, and GM is committed to being clear about what information is used, how it's protected, and the choices customers have about what they share," the spokesperson said.
Assembly line worker Janice DeBono looks over a 2023 Chevrolet Bolt EUV at the General Motors Orion Assembly, Thursday, June 15, 2023, in Lake Orion, Mich. (AP Photo/Carlos Osorio)
The case is the latest development in a story that began in 2024, when The New York Times reported that GM and OnStar, the company’s connected vehicle service, were selling drivers’ data to data brokers. GM ended Smart Driver that April. The Federal Trade Commission later barred GM from sharing drivers’ location and driving behavior data with consumer reporting agencies for five years.
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Under the new settlement, which takes effect Nov. 30, GM must get drivers’ consent before collecting, using or sharing their driving and location data. Exceptions include sharing with emergency responders, responding to government requests and court orders, and handling safety recalls and repairs.
If GM shares data with an outside company for usage-based insurance, it must get consent first and tell drivers the data could affect their insurance rates or coverage.
Drivers must also be able to turn off location tracking if their vehicle allows it. New OnStar customers must sign up themselves. Anyone who doesn’t respond within 10 days of an enrollment notice will be treated as declining.
The settlement also gives drivers new rights. They can ask GM to delete their data or request a copy, along with the kinds of companies it was shared with. GM must respond to those requests within 45 days.
GM must also delete most driving data it kept from before Jan. 16, 2025, within 180 days, with some exceptions.
The settlement also requires GM to run a privacy program until 2046 and keep a chief privacy officer who reports to the company’s board. An independent assessor will review the program. Its reports will go to the Washington state attorney general, and Michigan can request a copy.
This article has been with a comment from General Motors.
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