New Jersey to Receive $8.9 Million in $220 Million Settlement After General Motors Allegedly Sold Drivers’ Private Data to Insurance Companies
New Jersey Attorney General Jennifer Davenport announced the settlement on Thursday, October 29, joining a coalition of 36 attorneys general who investigated GM’s handling of consumer driving data.
According to state officials, between 2016 and 2024, GM enrolled millions of drivers in its Smart Driver program, which tracked driving habits such as speeding, sudden braking, rapid acceleration, seat belt usage, and vehicle location.
Although GM marketed the program as a tool to help drivers improve their safety, investigators found that the company sold the collected information to data brokers, who then provided it to insurance companies. Insurers could use the information to evaluate individual drivers and potentially increase their insurance premiums.
Investigators also found that many customers were enrolled in the program at dealerships without fully understanding what they were agreeing to. In some cases, dealership employees allegedly accepted terms and conditions on customers’ behalf without their consent.
Additionally, approximately 370,000 drivers were incorrectly informed through GM’s OnStar app that they were not enrolled in the Smart Driver program, even though their information was being collected and sold.
Following media reports exposing the practice, GM discontinued the Smart Driver program.
Under the settlement, GM must obtain consumers’ explicit consent before collecting or sharing their driving and location information. The company must also implement stronger privacy protections, undergo data protection assessments, and improve dealership oversight to prevent unauthorized enrollment in data collection programs.
The settlement includes $220 million in payments nationwide, with New Jersey receiving $8.9 million.
State officials emphasized that automakers must be transparent about how they collect and share customers’ personal information, particularly when that information could affect insurance costs for families across New Jersey.
