New Jersey Secures $8.9 Million After GM Sold Drivers’ Data to Insurers
Trenton, N.J. – On Oct. 29, 2026, Attorney General Jennifer Davenport announced that New Jersey will receive $8.9 million from a nationwide settlement with General Motors (GM). The settlement resolves allegations that GM secretly sold private driver‑behavior and location data to data brokers, who then provided it to insurance companies.
How the data was collected and sold
From 2016 to 2024, GM enrolled millions of owners in its Smart Driver program, a telematics service that recorded seat‑belt use, speed, hard braking, rapid acceleration and other driving habits. GM told drivers the data would not be shared without their express consent, yet the company sold the information to data brokers under contracts that required use for insurance products.
- 1Check any emails or paperwork from GM about Smart Driver enrollment
- 2Confirm whether you gave express consent for data sharing
- 3Contact your insurer to ask if your premium was based on telematics data
- 4Consider opting out of telematics programs or deleting the app
Source: New Jersey Attorney General
Impact on insurance premiums
Insurance companies used the detailed driving records to assess individual risk and, in many cases, raise premiums. The New York Times reported that insurers adjusted rates based on the data, adding financial pressure on families already struggling with affordability.
Settlement terms and new privacy safeguards
The $220 million nationwide settlement requires GM to obtain affirmative, express consent before collecting or disclosing any driving or location data. In addition to the $8.9 million earmarked for New Jersey, GM must limit future data collection, implement a comprehensive privacy program, and undergo internal and external assessments. Dealerships will receive training to prevent unauthorized enrollment of customers.
What this means for New Jersey drivers
Drivers who participated in Smart Driver – especially the 370,000 whose app incorrectly showed they were not enrolled – may have had their data sold without knowledge. While the settlement does not provide direct compensation to individual drivers, the state’s share of the funds can support consumer‑protection initiatives. Affected drivers should review any communications from GM or their insurer, verify whether they gave consent, and consider opting out of telematics programs if they wish to keep their driving habits private.
Anyone unsure about their rights or who believes their insurance rates were unfairly increased may benefit from a brief consultation with a consumer‑rights attorney.
What this means: our conclusions
- Good newsStronger privacy rules for car data
The settlement obliges GM to get explicit consent before gathering driving data, giving consumers more control over their information.
- Good newsPotential premium relief for some drivers
If insurers can no longer rely on secretly obtained data, some New Jersey drivers may see lower rates in the future.
- What to watchDealership enrollment practices under scrutiny
The case highlights how sales incentives can lead to unauthorized enrollment, prompting tighter oversight at car lots.
- What to doConsumers must verify consent
Drivers should review any GM or insurer communications to confirm they gave permission for data sharing and opt out if needed.
- What to watchOther states may seek similar settlements
With 36 states involved, the outcome could encourage additional actions against companies that misuse telematics data.
- Office of The Attorney General nj.gov
- Division of Consumer Affairs nj.gov
- View Complaint njoag.gov
- View Consent Judgment njoag.gov
- New Jersey Office of Attorney General njoag.gov
This article is general information based on New Jersey Attorney General and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 29, 2026.
Source: New Jersey Attorney General
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