Your Car Knows More About You Than You Think

Episode Focus

Today's vehicles know a lot about their drivers. Where they go. How they accelerate. How hard they brake. In some cases, that information has made its way beyond the vehicle manufacturer and into the insurance ecosystem.

That's no longer a hypothetical privacy concern. GM reached settlements with federal and California regulators over its handling of connected-vehicle data, including driving behavior and precise location information.

If the vehicle you're selling is collecting customer data, what does your customer expect you to know about it?

Cold Open

Your car knows where you go.

It can know how fast you drive, how hard you brake and when you accelerate.

And some of that information has already made its way into the insurance ecosystem.

So here's the question for dealers:

When your customer asks, “What is this car collecting about me?” Do you know what to tell them?

Today we're talking connected cars, driver data and what dealerships need to understand before privacy becomes another customer-experience problem.

 

Segment 1: What Actually Happened With GM?

The FTC alleged that GM collected and shared drivers' precise geolocation and driving-behavior data through its connected-vehicle services without obtaining adequate consent.

That included information about behaviors such as:

• Hard braking

• Hard acceleration

• Speeding

• Late-night driving

• Precise location

The FTC finalized an order in January 2026 restricting GM's ability to disclose certain connected-vehicle data to consumer reporting agencies for five years and requiring clearer consent and deletion mechanisms.

California subsequently reached a $12.75 million settlement with GM and OnStar in May 2026 over allegations involving the collection and sale of location and driving-behavior data. The California AG said some of that data was sold to third parties that used it to create driving scores for insurance companies.

Dealer Lens

The customer bought a car.

They may have understood that connected services were part of it.

What they may not have understood was:

My driving behavior could leave this vehicle ecosystem and potentially become part of an insurance decision.

That's a very different customer expectation.

Imagine a customer comes back and says:

“My insurance changed because of information my car collected. Why didn't anybody tell me?”

The salesperson didn't create the program.

The dealership didn't sell the data.

The dealership didn't change the insurance rate.

But who is the customer standing in front of?

That's where this becomes a dealership conversation.

Core Idea: The dealer may not control the data, but they can still inherit the customer's confusion.

 

Segment 2: What Does Your Car Actually Know?

Connected Vehicles Can Generate Data Around

Depending on the manufacturer and services enabled:

• Location

Where the vehicle travels and potentially when.

• Driving behavior

Acceleration, braking, speed and other driving events.

• Vehicle health

Diagnostics, mileage, battery information, maintenance needs and fault codes.

• Connected services

Navigation, infotainment, app interactions and other connected features.

The exact data varies by OEM, vehicle and service.

Dealer Lens

• How much should the salesperson realistically know?

• Is this something that belongs in delivery rather than at the desk?

• Should product specialists understand privacy settings alongside Bluetooth and Apple CarPlay?

• Are we handing customers increasingly sophisticated computers without explaining the digital side of ownership?

Core Idea: Vehicle delivery isn't only about teaching customers how the features work anymore. It may also be about teaching them what those features connect to.

 

Segment 3: The Insurance Connection

Traditional usage-based insurance is usually explicit: 

Download this app or install this device and potentially receive a discount based on how you drive.

The GM case raised a different concern: consumers allegedly weren't adequately informed that connected-car driving data could ultimately reach third parties involved in insurance-related products.

That's the distinction worth discussing.

Dealer Scenario

Customer asks:

“Can anything this vehicle collects affect my insurance?”

No, is no longer correct. Yes, is too broad.

The better dealership behavior may simply be:

“Let's show you where the manufacturer explains its connected services and privacy settings.”

Now we're talking about:

• Training

• Disclosure

• Delivery

• Customer trust

• Knowing where to find accurate OEM information

• Not making promises the dealership can't substantiate

Core Idea: Dealers don't need to become data-privacy experts. They need to know where the answers live.

 

Segment 4: This Isn't Just One OEM

Connected-vehicle data has attracted scrutiny beyond GM.

Texas sued Allstate and its Arity subsidiary over allegations involving the collection and use of driving/location data obtained through third-party apps. Texas later announced a settlement requiring consent and disclosure changes.

Other litigation has raised questions about automotive and insurance companies' use of telematics data.

What Dealers Should Take From That

Connected-car data is now a regulatory and customer-trust issue across the automotive ecosystem. And different OEMs may handle it differently.

Dealer Lens

Does your team know where to find the privacy and connected-services information for every brand you sell?

For a franchise store, the OEM should be the authoritative source.

Core Idea: Don't guess about what the car collects. Know where your OEM explains it.

 

Segment 5: What Can the Customer Actually Control?

Depending on the vehicle, manufacturer and applicable law:

• Connected-service enrollment

• Certain data-sharing permissions

• Location services

• App permissions

• Privacy requests

• Data deletion

• Some insurance/telematics participation

But there can be trade-offs.

Turning off certain connectivity or data sharing can affect functionality associated with connected services.

Dealer Lens

This is actually a delivery opportunity.

Think about how dealerships already walk customers through:

Bluetooth.
Seat memory.
Driver profiles.
Navigation.
Mobile apps.

Privacy settings can become another part of that conversation. Not a 30-minute legal disclosure.

Just:

“Before you leave, let's make sure you understand the connected services you've activated and where you can manage your privacy settings.”

That's good customer service regardless of regulation.

Core Idea: Privacy can become part of product education instead of another piece of fine print.

 

Segment 6: What Should Dealers Actually Do?

Keep the recommendations simple.

1. Know What You Sell

• What connected services exist?

• Where are the privacy controls?

• Where does the OEM explain data collection?

• Who should customers contact with questions?

2. Don't Freelance the Answer

If a customer asks:

“Does this car send my driving information to my insurance company?”

and the salesperson doesn't know:

Don't guess.

Show them the manufacturer's documentation or escalate the question.

3. Add Privacy to Delivery Training

Your delivery specialist already explains the technology.

4. Make Sure Used Cars Are Reset

Connected vehicles can contain previous-user profiles and paired devices. Used-vehicle preparation should include appropriate factory-reset/account-removal procedures consistent with the manufacturer's process.

5. Watch the Regulatory Environment

Privacy rules around connected vehicles are still developing.

Closing thought:
Your customers already know their phones collect data. 

Dealers didn't create this technology, and they don't control every place the data goes. But you're still the person handing the customer the keys.