Your Car Might Be a Snitch—and It’s Costing You Hundreds More in Insurance

Your car is a tattle tale. About 90% of new cars on the road collect detailed information on your driving behavior and tell third parties like insurance companies about your driving behavior. You agreed to it when you bought the car, even if you don’t remember doing so. The consent form was buried deep in your contract.

Philip Siefke found out the hard way. He hit his brakes hard while driving. Less than 24 hours later, Progressive already knew about it. His Toyota ratted him out to the insurer. Siefke was “pissed” and when he called to complain, a rep told him he’d agreed to share the information. Six months after buying a policy for less than $300 a month, his rate jumped to over $400.

The Federal Trade Commission warned consumers about the practice in 2024, calling cars powerful data-gobbling machines that threaten privacy and financial welfare. Last month, the FTC prohibited General Motors from selling driving data for five years—though GM paid no fine and said it had already stopped the practice a year earlier.

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