Nebraska’s Attorney General Mike Hilgers has filed a lawsuit accusing General Motors and its OnStar service of tracking drivers’ habits without their clear consent. According to the complaint, GM collected detailed driving data through telematics systems installed in its vehicles and then shared that information with insurance companies. This data was used to create “driving scores,” which influenced insurance rates and coverage decisions.
The lawsuit claims GM’s telematics systems recorded multiple things, like how fast people drove, whether they wore seatbelts, sharp turns, and driving late at night. This information was then stored in databases called “telematics exchanges,” which GM had third-party companies manage. These companies calculated driving scores based on negative factors set by GM. Insurance companies bought access to these scores and used them to decide premiums, cancel policies, or deny coverage for over 16 million GM drivers.
Hilgers says the company misled customers at the point of sale. Many drivers were told that signing up for OnStar was mandatory for basic safety features, which was not true. The lawsuit also alleges that dealerships pushed customers to enroll in OnStar without fully explaining what it involved or sometimes without getting their consent at all.
The Attorney General wants the court to impose penalties on GM and secure compensation for affected Nebraska drivers. Hilgers emphasized that people deserve honesty from companies, especially when their personal data affects their insurance costs.
This case raises important questions about privacy and transparency in the way automakers handle driver information. As technology becomes more embedded in vehicles, how companies use data and inform consumers will likely face more scrutiny. For now, Nebraska is stepping up to challenge practices it says hurt drivers without their knowledge.