Direct answer: General Motors will pay $220 million to settle claims that it sold private driver behavior and location data to data brokers, who then sold that data to insurance companies. State attorneys general announced the settlement on October 29, 2026.
What happened
State attorneys general from 35 states and the District of Columbia reached the settlement with General Motors over its Smart Driver program. The program ran from 2016 to 2024 and enrolled millions of drivers.
According to the states, General Motors told drivers that Smart Driver would help them drive more safely, and that it would not share their data with insurers without consent. The states allege that General Motors instead sold the data to brokers under contracts that specified the data would be used for insurance products. Those brokers then sold the data to insurance companies, who used it in part to set insurance rates, sometimes raising premiums.
The data was personal and specific. It included how often a person drove, the start and end times of trips, hard braking and hard acceleration, and speeding, along with specific location data.
The states also allege a serious app error. The OnStar app mistakenly told more than 370,000 drivers that they were not enrolled in Smart Driver, when they actually were enrolled, and their data was being collected and sold. General Motors later unenrolled those drivers without telling them about the mistake, and left their data with the brokers and insurers.
General Motors discontinued Smart Driver after The New York Times reported on these practices in March 2024. The settlement announced on October 29, 2026, resolves the states claims. Oregon will receive more than $10.4 million, Pennsylvania is expected to receive $8.67 million, and Utah will receive $6,938,619.
Under the settlement, General Motors must now get drivers affirmative, express consent before collecting or sharing their driving and location data. It must also limit the driving data it collects, run a data privacy program with internal and external assessments, and train and oversee dealership staff on consent.
This was not the first resolution on this conduct. General Motors agreed in May to pay $12.75 million to settle a California investigation into the alleged sale of driver data to two brokers. In January 2025, General Motors agreed with the US Federal Trade Commission not to disclose vehicle location and driver behavior data to consumer reporting agencies for five years. TechCrunch reported the $220 million settlement on October 29, 2026: https://techcrunch.com/2026/10/29/gm-reaches-220m-settlement-over-selling-drivers-private-data/
Why it matters for beginners
Insurance is a regular monthly cost, and for many households it sits alongside rent, food, and transport in a monthly budget. If driving data can change an insurance price, then a privacy setting can have a real money effect, even when the driver never sees the data change hands.
This case is also a useful lesson in reading permissions. A program described as a safety tool can still collect detailed movement data. Consent matters most when the data is detailed, personal, and easy to link to one person.
For a simple way to place insurance in your own plan, see our guide on how to create a monthly budget that actually works: https://investclaritypath.com/how-to-create-a-monthly-budget/
What to watch next
Watch how General Motors changes its consent screens and data collection in connected car apps, and whether drivers are asked clearly before any driving or location data is shared. Watch for further state guidance on how the privacy program will be assessed, and for any update on whether insurers change how they use this kind of data. The settlement sets rules for the future, but the practical change will show up in what drivers are asked, and what they agree to, in the app.
Frequently asked questions
Did drivers get individual payments from this settlement?
The announcements checked for this post describe payments to states, such as Oregon, Pennsylvania, and Utah. They do not describe individual driver payments in the material checked.
What data was involved?
Driving behavior and location data, including trip times, hard braking, hard acceleration, speeding, and specific geolocation.
What should a beginner check in a connected car app?
Check whether a driving score, safety, or rewards feature is switched on, what data it collects, and whether sharing with third parties is switched on. If the wording is unclear, switch the feature off until you understand it, and ask the carmaker or insurer directly how the data is used.
Does this mean every insurer uses driving data this way?
No. Insurers use many factors to set prices, and practices differ by company and state. This case is about one program and one set of allegations, not about every insurer.