Have Your Auto Insurance Rates Increased? This Could Be the Reason

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Poor driving habits could lead to higher auto insurance rates. However, some drivers aren’t aware that their data is being recorded and shared. Find out more. [[{“value”:”

Many drivers have seen their auto insurance rates increase in recent years. As more living expenses rise, Americans part ways with more of their income. When money is tight, price increases like this can cause financial stress.

For drivers who haven’t made recent claims or changed coverage, there may be a reason why their insurance policy now costs more.

Some car manufacturers are sharing driving data

Factors like age, driving history, location, and car type can influence auto insurance rates. These factors could result in higher premiums, but some drivers have seen their rates climb without any apparent reason.

Earlier this month, an article by The New York Times reported that some car manufacturers have been sharing data with car insurance companies. Insurers have been using this data to set and adjust policy rates. Manufacturers are sharing this data through data brokers like LexisNexis.

Unfortunately, this may happen without a driver’s knowledge, and some reported driving habits could lead to increased rates. While some insurers offer programs that drivers can opt into to monitor their driving habits in exchange for potential insurance discounts, this is different.

Some drivers are having their driving habits monitored without their knowledge. For those who drive cars with plentiful tech, it’s wise to verify whether they’re being monitored. Some auto brands are tracking data such as speeding, hard braking, and sharp accelerations.

Vehicles with built-in tech may record driving data. When using certain features, a driver may unintentionally allow the manufacturer to share their data once they agree to the terms and conditions. The New York Times article found that many drivers had no idea their data was being shared. Some auto manufacturers were more forthcoming than others.

General Motors has since stopped sharing customer data

General Motors was one of the car makers included in The New York Times report. For years, the company has been sharing data collected from OnStar Smart Driver, a connected feature that gives drivers insight into how to be better drivers.

However, many drivers said they were unknowingly enrolled in this service and were caught off guard. Unsurprisingly, the company received backlash. General Motors has since announced it will no longer share private data like this. Now that more people know about this practice, it’ll be interesting to see if other car companies announce similar updates.

Drivers should review terms and conditions before using new tech

For those driving newer cars with built-in tech features, now is an excellent time to review the terms and conditions for connected vehicle apps and tools. Some drivers may be allowing car manufacturers to share driving data without realizing it, which could impact their privacy and personal finances. That’s why it’s best to review permissions before using this kind of tech.

Compare quotes to get the best deal

Drivers who are frustrated by insurance increases should consider gathering insurance quotes from other insurers. Switching auto insurance companies could allow some to keep more money in the bank. It’s also worthwhile to verify if any discounts are available to maximize savings.

Some insurers offer discounts to students who maintain good grades, drivers who complete driver safety courses, and customers who pay their policy in full. Review our list of the cheapest car insurance companies to learn more.

Our best car insurance companies for 2024

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool recommends Maker. The Motley Fool has a disclosure policy.

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