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GM cracks the petty cash box for multistate driver tracking settlement

Policy1 min read

General Motors (GM) agreed to pay $220 million to settle claims from 36 state attorneys general. The claims say GM collected drivers' data without proper consent and sold it to data brokers, who passed it on to insurance companies.

What happened

GM reached a $220 million settlement with 36 attorneys general over how it collected and shared driving data. The data included exact location, speed, and seatbelt use. Investigators say GM sold this data to brokers, and the brokers gave it to insurers. Insurers could use it to set customers' prices, and drivers had not clearly agreed to this.

Key numbers and facts

  • Settlement: $220 million, shared among the states and District of Columbia
  • Number of attorneys general involved: 36
  • GM's net income for its third quarter, which ended September 30, 2026: $3.3 billion
  • The settlement is less than 7 percent of that quarterly net income
  • The OnStar app wrongly told more than 370,000 drivers they were not enrolled in Smart Driver

How the problem started

Smart Driver was a program from GM's subsidiary OnStar. It tracked driving habits and gave reports to car owners to help them drive better. In 2024, a New York Times investigation found that GM was also selling this data. GM ended the program in April 2024, citing customer feedback.

Why it matters

This case shows that car data can be personal and valuable, and it can affect what people pay for insurance. The states say GM did not get clear permission from drivers. GM also agreed to limit the driving data it collects, better protect customer personal information, and build a full data privacy program.

What to watch

  • GM's separate settlement with the Federal Trade Commission was finalized in January 2026 and requires drivers' express consent before data is collected or shared
  • Drivers can ask for a copy of their data, ask for it to be deleted, and turn off precise location tracking where the car allows it
  • How the settlement money is divided among the states

Glossary

General Motors
A large American car company that makes and sells vehicles.
OnStar
GM's subsidiary that offers in-car services, including the Smart Driver program.
Smart Driver
A GM program that tracked driving habits and gave reports to drivers, but also shared data without clear consent.
Federal Trade Commission
A U.S. government agency that protects consumers and punishes unfair business practices.

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