In a bold move to protect consumer privacy, Nebraska Attorney General Mike Hilgers has filed a lawsuit against General Motors (GM) and its connected services arm, OnStar, accusing them of quietly collecting and selling personal driving data from Nebraska residents without their consent.
At the heart of the lawsuit is a claim that GM and OnStar turned everyday vehicles into data-harvesting machines, tracking how Nebraskans drive—their speed, braking patterns, seatbelt use, and even location and then selling that data to third-party brokers. That information was allegedly used to create “driving scores” that insurance companies relied on to raise premiums, deny coverage, or cancel policies entirely.
“Nebraskans deserve to work with companies that are honest about what they’re doing,” said Hilgers. “Instead, GM chose not to tell drivers that their data was being used to punish them. That’s unacceptable.”
Your Car May Know More Than You Think
Modern vehicles are more connected than ever. Many come with built-in systems like OnStar that offer safety features, navigation help, and even emergency services. But according to the lawsuit, GM didn’t clearly tell drivers that enrolling in these services or even using their mobile apps meant their driving habits would be tracked and sold.
The complaint outlines several key concerns:
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Misleading sales tactics: Car buyers were led to believe they had to enroll in OnStar to access safety features.
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Hidden data-sharing: Drivers weren’t told their personal data would be collected and sold.
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No real consent: In some cases, dealership staff signed customers up for services without even asking.
Insurance Rates Affected Without Warning
Perhaps the most troubling claim: Drivers paid the price literally, without ever knowing. The lawsuit describes how these secret driving scores were passed to insurers, who used them to bump up rates or deny policies altogether.
A Nebraska resident who recently saw his insurance premium spike was shocked to learn it was based on a telematics score. “I never agreed to be tracked,” he said. “I didn’t even know my car was doing that.”
GM Responds
When asked about the lawsuit, a spokesperson for GM issued a brief statement:
“We remain committed to protecting consumers’ privacy and will review the complaint.”
But for many Nebraskans, that response may not be enough. The state is not only seeking financial penalties and restitution, it wants to stop these practices altogether.
Why This Matters for All Drivers
This case isn’t just about Nebraska. A 2024 New York Times report revealed that other drivers across the country have been tracked in similar ways, without their knowledge. As cars become smarter and more connected, privacy concerns are rising, especially when personal data is used to affect something as vital as insurance coverage.
How to Protect Yourself
If you own a connected vehicle, here’s what you can do:
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Check your app settings: Make sure you understand what permissions you’ve granted.
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Review your enrollment status: Ask your dealer if you were signed up for any connected services.
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Ask questions: Don’t be afraid to challenge vague answers or unclear terms when buying a car.
This lawsuit may be the beginning of a larger reckoning for how automakers handle consumer data. For now, Nebraska is leading the charge, reminding companies that privacy isn’t optional, and trust is not to be taken for granted.
