When you get behind the wheel, you might not think about who’s tracking your driving habits. However, a recent lawsuit filed by Texas Attorney General Ken Paxton against Allstate is bringing driver data privacy into the spotlight. The lawsuit alleges Allstate and its subsidiary, Arity, collected and sold personal driving data from millions of consumers—without their consent.
This case raises serious concerns about how insurance companies and automakers collect, use, and profit from driver data. Many Texas drivers are unaware that their vehicles and mobile apps may be tracking their location, speed, braking patterns, and other behaviors—potentially leading to higher insurance rates or even data sales to third parties.
With Texas law requiring companies to obtain consent before collecting personal data, this lawsuit could set a precedent for how driver information is handled in the future. But what does this mean for everyday drivers in Texas? And how can you protect your personal data from being used without your knowledge?
Here are the key details of the lawsuit, the risks of data collection in the auto industry, and what you can do to protect your driving information.
What Is the Lawsuit Against Allstate About?
Texas Attorney General Ken Paxton’s lawsuit against Allstate centers on allegations that the company, through its subsidiary Arity, collected and sold driver data without obtaining proper consent from consumers. According to the lawsuit, Allstate gathered this data in two main ways:
- Through Mobile Apps – The lawsuit claims Allstate embedded a software development kit (SDK) into popular mobile apps such as Life360, Fuel Rewards, and GasBuddy. This allowed the company to collect detailed driving behavior data—such as location, speed, acceleration, and braking habits—without users explicitly consenting to it.
- Directly From Automakers – The lawsuit also accuses Allstate of obtaining driver data from car manufacturers, including Toyota, Lexus, Mazda, and Stellantis brands (Chrysler, Dodge, Fiat, Jeep, Maserati, and Ram). As modern vehicles become more computerized, automakers have access to vast amounts of personal driving data, and this lawsuit suggests that data was sold without consumers being fully aware.
Why Is This a Problem?
While insurance companies have long used driving records to determine rates, this lawsuit highlights a growing concern: drivers may not realize their personal data is being used to raise their insurance premiums or sold to third parties.
Paxton argues that Allstate's actions violate the Texas Data Privacy and Security Act (TDPSA), which requires companies to obtain clear, informed consent before collecting and sharing personal data. If successful, the lawsuit could force Allstate to stop its data collection practices, delete improperly obtained information, and pay civil penalties of up to $10,000 per violation.
With data privacy becoming an increasingly hot topic in the auto industry, this case could set a legal precedent for how car manufacturers, insurers, and tech companies handle driver data moving forward.
How Are Insurance Companies Using Driver Data?
The lawsuit against Allstate highlights a growing trend in the insurance industry—the use of driver data to assess risk and determine premiums. But how exactly do insurance companies collect and use this information?
1. Tracking Driving Habits to Adjust Premiums
Many insurance companies now offer telematics-based programs, such as Allstate’s Drivewise, which monitor real-time driving behaviors like:
- Speeding
- Hard braking
- Rapid acceleration
- Driving at night or during rush hour
In theory, these programs allow "safe drivers" to receive lower rates. However, concerns arise when data is collected without consent and used to justify higher premiums instead.
2. Buying Driver Data from Third Parties
Instead of relying solely on policyholder-provided data, insurers purchase driving records from third-party data brokers like LexisNexis and Verisk—companies that collect vast amounts of vehicle and driving history information. Many drivers are unaware that their past driving behaviors are being analyzed behind the scenes to influence their insurance costs.
3. Selling Data for Profit
Insurance companies and automakers profit from selling driver data to third parties, including:
- Other insurance providers
- Marketing agencies
- Law enforcement
- Auto finance companies
A 2023 study by the Mozilla Foundation found that 92% of automakers provide drivers with little control over their personal data, while 84% share that data with third parties. This means that even if you're not enrolled in a telematics program, your data may still be collected, sold, and used against you.
Why This Matters for Texas Drivers
The Texas Data Privacy and Security Act was designed to prevent companies from collecting and selling personal data without consumer consent. The lawsuit against Allstate suggests that insurance companies are violating this law, putting millions of drivers at risk of unfair rate increases and privacy breaches.
If you’re concerned about how your driving data is being used, it’s important to understand your rights and take steps to protect your information.
How Can Texas Drivers Protect Their Personal Data?
With insurance companies, automakers, and third-party data brokers all looking to profit from driver data, Texas drivers need to take proactive steps to protect their personal information. Here’s what you can do to safeguard your data and prevent it from being misused:
1. Opt Out of Telematics and Data Tracking Programs
Many insurers offer usage-based insurance (UBI) programs like Allstate’s Drivewise or Progressive’s Snapshot, which track driving habits in exchange for potential discounts. If you’re uncomfortable with this data being collected, check with your insurance provider to opt out of telematics programs before signing up.
Additionally, disable location tracking on any insurance apps that may be collecting data without your knowledge.
2. Review Privacy Settings in Your Vehicle
Modern cars are equipped with infotainment systems and connected vehicle technology that can track:
- Your location
- Your speed and braking habits
- How often you use certain vehicle features
To reduce data collection:
- Check your vehicle’s privacy settings and disable unnecessary tracking.
- Ask your dealership or manufacturer about what data is being collected and whether you can opt-out.
- Be cautious when syncing your phone to your car’s infotainment system, as it may store call logs, messages, and location history.
3. Request a Copy of Your Driver Data
Under the Texas Data Privacy and Security Act, you have the right to:
- Know if a company is processing your personal data.
- Request a copy of the data they have collected.
- Delete personal data that has been obtained without consent.
You can submit a request to data brokers like LexisNexis and Verisk to see what driving records they have on you and ask for them to be deleted if necessary.
4. Be Cautious with Mobile Apps
Many popular apps—such as GasBuddy, Life360, and Fuel Rewards—collect driving data and share it with third parties. Before installing any app:
- Read the privacy policy to see what data is being collected.
- Limit app permissions (such as location tracking) in your phone’s settings.
- Use apps that respect data privacy and don’t sell information to insurers.
5. Stay Informed About Data Privacy Laws
The Texas Attorney General’s lawsuit against Allstate shows that state regulators are cracking down on data privacy violations. However, drivers should remain informed about their rights and push for stronger privacy protections.
If you believe your data has been collected or sold without your consent, consider consulting a consumer protection attorney to explore your legal options.
Protecting Your Privacy on the Road
The lawsuit against Allstate is a wake-up call for Texas drivers. While modern technology makes driving more connected than ever, it also raises serious concerns about who has access to your personal data and how it’s being used. From insurance companies adjusting rates based on hidden data collection to automakers selling driver information without clear consent, the risks to consumer privacy are greater than many realize.
Fortunately, Texas law is on your side. The Texas Data Privacy and Security Act gives you rights over your personal data, and lawsuits like this one reinforce the importance of holding corporations accountable for unauthorized data collection. But staying informed and taking proactive steps—like opting out of tracking programs, reviewing vehicle privacy settings, and requesting your driver data—can help protect your information before it’s misused.
If you’re concerned about your rights as a consumer or believe your driving data has been used against you unfairly, seeking legal guidance may be the best course of action. At Hoover Rogers Law, LLP, we stay on top of evolving privacy laws and fight to protect Texas drivers from unfair practices.
For more information on your legal rights or to discuss concerns about data privacy, contact our team today for a free consultation.
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