Is Your Car Watching You? How Modern Vehicles Collect Driver Data

Published Date: 10/18/2025

Is Your Car Watching You? How Modern Vehicles Are Redefining Privacy and Insurance

Once upon a time, cars were simply machines—gears, gas, and grit. Today, they’re computers on wheels. They know how fast we drive, where we go, when we brake, and even how we feel behind the wheel. While this technology promises safety and efficiency, it also raises a fundamental question: how much of your personal life should your car know—and who else gets to see it?

Recent reports show that modern vehicles are collecting more data than ever before—often without drivers fully understanding what’s being gathered, where it goes, or how it’s used. According to studies cited in the Insurance Hour discussion, roughly 84% of automakers share or sell driver data to third parties, including insurance companies.

That means your car may not just be watching you—it could be profiling you.

The Rise of the “Connected Vehicle”

Modern vehicles are equipped with an array of sensors and digital systems that monitor virtually every movement and behavior behind the wheel. Advanced driver-assistance features (ADAS), telematics, and infotainment systems all feed a constant stream of data to manufacturers.

The information collected can include:

• Driving speed, acceleration, and braking habits.
• GPS location history and route data.
• Seat belt use, door openings, and maintenance logs.
• Phone call and text message metadata when synced via Bluetooth.
• Even in-cabin camera footage capturing driver expressions or gestures.

Brands like Tesla, BMW, and Toyota have been open about using such data to improve vehicle performance, navigation, and safety algorithms. But the tradeoff is that much of this information isn’t stored locally—it’s transmitted back to corporate servers, often shared with partners, insurers, and, in some cases, advertisers.

As Insurance Hour host Karl Susman observed, “With technology comes convenience—but it also comes with a little bit of privacy loss.”

The Insurance Connection: Data as a Pricing Tool

The insurance industry has long sought better ways to measure driver risk beyond traditional metrics like age, ZIP code, or credit score. Enter telematics—a data-driven approach that uses real-time driving behavior to determine premiums.

Many drivers already use usage-based insurance (UBI) programs such as Drive Safe & Save (State Farm) or Snapshot (Progressive). These programs track metrics like acceleration, mileage, and nighttime driving to reward “safe drivers” with lower rates.

The difference now is automakers themselves are collecting—and in some cases, directly selling—this data to insurers.

In theory, it’s a win-win: insurers get accurate risk profiles, while safe drivers pay less. But the model also raises troubling questions about consent, transparency, and fairness.

“If your car data is automatically shared without your explicit approval,” Susman noted, “you might be paying higher premiums for something you never agreed to.”

The Consent Trap: What You “Agree” to When You Buy a Car

Buried deep in the fine print of modern vehicle purchase agreements and app terms of service is language that grants automakers broad rights to collect, store, and share user data.

That means when you drive off the lot, you may have already consented to your data being sold or transmitted—even if you never clicked “Accept.”

For instance, some agreements give automakers the right to:

• Record driver biometrics such as voice and facial recognition data.
• Share GPS location and telematics data with “authorized partners.”
• Retain data indefinitely, even after the vehicle is sold.

According to a Mozilla Foundation report, most car manufacturers received failing grades in data privacy. Of 25 major brands studied, none fully complied with best practices for consent and data transparency.

This isn’t just about marketing or personalization—it’s about surveillance baked into ownership.

Your car’s dashboard may be sleek and silent, but behind the scenes, it’s talking—to servers, satellites, and sometimes strangers.

How This Impacts Insurance Rates

For insurers, driver data is gold. It provides granular insights into behavior that traditional underwriting could only guess at. If the system sees that you brake hard, accelerate aggressively, or drive late at night, your risk score rises—and so might your premium.

But what if that data isn’t coming from a voluntary insurance app, but directly from your car manufacturer?

That’s where things get murky. Many consumers aren’t even aware that insurers might already be factoring this “vehicle telemetry” into pricing.

This blurring of lines between carmakers and carriers raises three key concerns:

1. Consent: Did you knowingly agree to share this data with insurers?
2. Accuracy: What if the data misinterprets your driving habits?
3. Fairness: Should all drivers be judged by digital surveillance rather than actual claims history?

Susman summarized it bluntly:

“It’s one thing to install a tracker by choice—it’s another when your car does it for you.”

When Technology Becomes Intrusive

Some vehicles now feature in-cabin cameras designed to detect distraction or fatigue. These systems can recognize eye movements, yawning, and even emotional expressions.

Manufacturers claim this technology improves safety by preventing accidents. For example, if a camera detects that a driver is drowsy, it can issue alerts or even slow the car automatically.

But as reports have surfaced, these cameras sometimes record continuously—and store that footage. In one viral incident, leaked Tesla camera videos captured private moments inside vehicles, sparking outrage over surveillance and data misuse.

While such data could theoretically help insurers understand driver attentiveness or reaction times, it also risks exposing intimate, non-driving-related behavior. “You could be having a private conversation,” Susman noted, “and not realize that your car is listening.”

The Data Marketplace: Who Really Owns Your Driving Record?

Data is now the world’s most valuable commodity—and cars are among its richest sources. Beyond insurance, automakers share driver data with a host of other entities, from analytics firms to law enforcement.

A few startling statistics:

• 84% of manufacturers share or sell collected data with third parties.
• 56% share data with “service providers” or “affiliates.”
• Many retain data for years after the original owner sells the car.

The biggest problem? There’s no unified federal law governing automotive data privacy. Each company sets its own standards, and consumers have little recourse if that data is misused or sold downstream.

Regulation on the Horizon

Lawmakers and regulators are beginning to take notice. The California Consumer Privacy Act (CCPA) and its successor, the California Privacy Rights Act (CPRA), require businesses to disclose what personal data they collect and allow consumers to opt out of its sale.

But implementation remains uneven, and few drivers know how to exercise those rights.

Insurance regulators, too, are watching closely. As telematics-based pricing grows, regulators may soon require insurers to disclose whether vehicle data was used in underwriting decisions—and to prove that it wasn’t discriminatory.

Susman predicts a growing movement toward data ownership reform, where consumers will be able to control, limit, or monetize their own data. “We’ve reached the point,” he said, “where drivers deserve a dashboard for their data as much as for their car.”

Protecting Yourself: What Drivers Can Do

Until stronger laws catch up, drivers can take steps to protect their privacy:

1. Opt out where possible. Review your vehicle’s connected services menu and privacy settings—many allow you to disable some data-sharing functions.
2. Read your agreements. Purchase contracts and companion apps often outline how your data is collected and used.
3. Use caution with apps. Avoid connecting unnecessary third-party apps to your car’s infotainment system.
4. Ask your insurer. Confirm whether your policy uses telematics data, and whether it’s pulled from your vehicle manufacturer.
5. Update firmware carefully. Some software updates can re-enable tracking features you’ve turned off.

The Bottom Line: The Road Ahead

The modern car has become a rolling data center—constantly analyzing, learning, and transmitting. This has made vehicles safer, more efficient, and more connected than ever before. But it’s also blurred the boundaries between innovation and intrusion.

For insurance, this data revolution holds enormous promise—but it must be matched by equal transparency and ethical restraint. Consumers shouldn’t have to choose between safety and privacy.

As Karl Susman concluded, “The question isn’t whether cars should collect data. The question is who owns that data—and what they’re allowed to do with it.”

Until regulators, automakers, and insurers align on that answer, every driver should remember one truth: your car may be smart, but it’s also watching.