Most people know data brokers sell their personal information to advertisers. Fewer people know data brokers also sell it to insurance companies — and that what they sell can directly affect your premiums.
What Insurance Companies Buy
Auto, life, and health insurers use a range of data sources beyond your own application. Data analytics firms like LexisNexis Risk Solutions and Verisk collect and sell "risk scores" to insurers based on data including:
- Your driving behavior (sourced from telematics programs, apps with location access, and automakers)
- Your purchasing history (what you buy reveals health habits, alcohol consumption, and lifestyle risks)
- Your social media activity
- Your credit score and financial history
- Public records including court records and property data
- Your address and neighborhood characteristics
The General Motors Scandal
In early 2024, it emerged that General Motors had been sharing detailed driving data from its OnStar program with LexisNexis and Verisk — without many customers' meaningful awareness. This data included precise trip information, speed, hard braking events, and rapid acceleration. LexisNexis then sold this driving profile to auto insurers, who used it to raise premiums.
Drivers who had signed up for OnStar's "Smart Driver" program saw their insurance rates increase substantially. Many didn't realize their driving data was being sold or that it was being used by their insurers.
LexisNexis and Your Insurance Score
LexisNexis maintains a "Comprehensive Loss Underwriting Exchange" (CLUE) report and a driving history report for most Americans with a driver's license or insurance history. You're entitled to a free copy of your CLUE report annually at personalreports.lexisnexis.com.
Review your report for errors — incorrect accident reports, claims filed in error, or data from previous owners of your vehicle can raise your premiums unfairly. Dispute any errors directly with LexisNexis.
What You Can Do
Opt out of OnStar Smart Driver and similar programs. If you have a GM vehicle, Hyundai Blue Link, Toyota Connected Services, or similar, review your data sharing settings and opt out of programs that share driving data with third parties.
Don't use insurer-provided "discount" telematics programs. Programs like Progressive's Snapshot or State Farm's Drive Safe & Save can raise your rates if your driving profile doesn't meet their standards. The discount is not guaranteed; the data collection is.
Request your LexisNexis report. Check it for errors annually and dispute anything incorrect.
Remove your data from data brokers. The less available your personal profile is, the less insurers can use peripheral data points against you in pricing models.