A class action lawsuit filed in the United States alleges Hyundai and Kia are sharing vehicle data, including trip reports and “hard braking” events, to insurance companies without owners’ consent.
Carscoops reports the lawsuit was filed in California federal court by Mark Will, who claims data on his driving behaviour between December 2023 and April 2024 was shared with his insurance provider, triggering a $250 increase to his premium.
The plaintiff claims Hyundai and Kia have violated the US’ Fair Credit Reporting Act with their connected car services, including UVO Connect, Kia Connect, Bluelink, and Bluelink+.
He owns a 2019 Hyundai Santa Fe with Bluelink.
These connected car services enable functions including vehicle remote location, starting, and locking, while also providing vehicle diagnostics, roadside assistance, and information useful to the recovery of stolen cars.
The lawsuit alleges Hyundai and Kia collect a large amount of data, which is then being sold to data broker Verisk Analytics. That broker then allegedly performs a risk analysis of each driver and proceeds to sell the information to automotive insurance companies.
As the class action has only recently been filed, Mr Will reportedly needs to secure appropriate certification, as he is seeking to represent all individuals who own Hyundai and Kia vehicles that share driving information.
Hyundai and Kia both fall under the Hyundai Motor Group umbrella, meaning they share the majority of their tech and connected services.
It’s not the first time a carmaker has been accused of gathering driving data and selling it on without the consent of its customers.
General Motors (GM) was earlier this year accused of doing exactly that with its OnStar connected services brand, which led to a Chevrolet Bolt owner being quoted a significantly higher insurance renewal premium due to the results of his LexisNexis driving report.
LexisNexis, a global data broker, has a Risk Solutions division which serves the insurance industry. Following a second report, GM ended its partnerships with two major data brokers.
MORE: GM cuts ties with data-collecting firms after selling driver’s information
