Connect with us

Finances

Florida Go well with Says OnStar, LexisNexis Shared Driving Information with Insurers, Spiking Charges

Published

on

Spread the love

Do motorist-assistance programs like GM’s OnStar feed knowledge to auto insurers, leading to increased premiums for some drivers?

A south Florida man says certainly, they do, and has filed a proposed class-action lawsuit in opposition to Normal Motors and LexisNexis Danger Options, claiming his premiums shot up after “inaccurate” info was illegally equipped to insurance coverage carriers.

Advertisement

Romeo Chicco, of Palm Seashore County, claims he by no means signed up for the OnStar system, which displays driving and may alerts authorities in case of an accident. Nor did he comply with let LexisNexis share his driving knowledge.

“Plaintiff is knowledgeable and believes that Normal Motors and OnStar offered and/or shared Plaintiff’s driving knowledge with out his data or consent,” reads the complaint, filed within the U.S. District Courtroom for Southern Florida. “This uncontextualized, deceptive, and private driving info on Plaintiff’s shopper disclosure harms Plaintiff’s potential to buy automobile insurance coverage. Furthermore, however the intense frustration and dissatisfaction with your complete ordeal, these disclosures hurt Plaintiff’s solitude and peace of thoughts.”

Advertisement

The swimsuit follows reports within the New York Instances and the New York Submit this week that some makes of autos are secretly spying on drivers and affecting their insurance coverage charges. LexisNexis officers couldn’t be reached for remark by Insurance coverage Journal Friday morning, and the defendants haven’t but filed a solution to the March 13 criticism. A spokeswoman for GM told the Times that the producer was reviewing the criticism, and famous that the OnStar privateness assertion mentions that knowledge could also be shared.

Driver monitoring programs have been supplied by auto insurers for years, by way of good telephone apps or by way of gadgets positioned in autos. However these ostensibly require shopper consent to be activated. Chicco’s attorneys argue that he purposefully averted consenting to OnStar knowledge sharing, but was enrolled anyway by way of misleading practices.

Advertisement

After a number of phone calls to GM, OnStar and LexisNexis, Chicco mentioned an OnStar consultant informed him that the agency has an “inside association” with insurance coverage firms. Insurers weren’t named within the swimsuit.

The swimsuit maintains that Chicco grew to become conscious of the alleged knowledge sharing two years after he bought a Cadillac from a Delray Seashore supplier in 2021. In 2023, his longtime insurance coverage provider notified him that it was now not writing in Florida. He mentioned he then contacted a number of different carriers, however all of them rejected his enterprise.

Advertisement

Lastly, he referred to as Liberty Mutual Insurance coverage Co., and a consultant there informed him that he had been denied protection resulting from info in his LexisNexis report. An area agent later helped Chicco acquire protection, however his premium was almost double his earlier quantity.

“Plaintiff wouldn’t have even purchased the Cadillac automobile to start with had he recognized of this grave invasion of privateness,” the lawsuit notes.

Advertisement

The swimsuit claims that GM and LexisNexis violated state and federal statutes, together with the Truthful Credit score Reporting Act, Florida’s Misleading and Unfair Commerce Practices Act, and privateness legal guidelines.

Florida Secretary of State data present {that a} Romeo Chicco is a widely known businessman in Boynton Seashore and head of a payroll companies firm.

Advertisement

The criticism could be seen here.

Subjects
Lawsuits
Florida
Carriers
Personal Auto
Data Driven

Advertisement

Enthusiastic about Carriers?

Get computerized alerts for this subject.

Advertisement
Advertisement
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *