(InvestigateTV) — As cars become increasingly connected, legislators and experts nationwide are voicing growing concerns about how much data car manufacturers and insurance companies can access and use.
Texas Attorney General Ken Paxton, a Republican, filed a lawsuit Monday against Allstate, one of the largest publicly traded insurance companies in the U.S.
The lawsuit accuses the insurer of unlawfully collecting, using, and selling more than 45 million consumers’ driving data nationwide without their consent to justify higher car insurance premiums.
This lawsuit follows a series of investigations and reports by InvestigateTV, which uncovered the privacy risks of data collection in the auto industry. Experts and lawmakers have raised concerns about how much information vehicles can gather on drivers and the potential implications for consumer privacy.
InvestigateTV examined the privacy policies of 14 major automakers, exploring their practices around collecting operator data such as geolocation, driving habits, and whether this information is being shared or sold to insurance companies. There have also been consumer complaints filed with the Consumer Financial Protection Bureau regarding potential leaks of personal data and driving habits.
Ryan Bates, who learned that his 2023 electric vehicle was collecting personal data when he obtained his personal report, said he had no way of knowing whether this information was being shared with his insurance company.
“Have they given it to my insurance company? I don’t know. There’s no way to know,” Bates said.
This legal action follows a similar suit Paxton filed in August against General Motors, accusing the automaker of unlawfully collecting drivers’ private data and selling it to multiple companies, including insurance firms. This case stems from an ongoing investigation into the data practices of car manufacturers launched by the Texas Attorney General’s office in June.
Paxton claims the data collection violates the Texas Data Privacy and Security Act, which took effect in July of 2024. This law prohibits companies from selling users’ precise geolocation data without first obtaining explicit consent.
“Allstate never notified Texans nor obtained their consent to collect or sell their sensitive data,” Paxton’s office stated in a press release. “This is the first enforcement action ever filed by a state attorney general to enforce a comprehensive data privacy law.”
InvestigateTV reached out to Allstate for comment. In its response, Allstate Corporation stated:“Arity helps consumers get the most accurate auto insurance price after they consent in a simple and transparent way that fully complies with all laws and regulations.”
While InvestigateTV asked for more details about Arity’s consent practices, the company did not provide further details. However, Allstate’s website acknowledges that it collects data from mobile devices, including geolocation and driving behaviors through apps. Arity also states that consumers have the right to request specific personal information it has collected and can ask for that data to be deleted.
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