Connected vehicle data has been sold as a cleaner path to behavioral underwriting, including in embedded channels that promise scale without device adoption friction. A large multistate settlement now presses on a quieter assumption behind that economics. For insurers, the permission trail must withstand scrutiny alongside the driving score.

This week’s deep dive covers:

More than 370,000 drivers were allegedly told they were not enrolled in a connected driving program when they were. State authorities said their data later remained with brokers and insurance companies after they were quietly unenrolled. That fact should command carrier attention. The trigger was General Motors agreeing to a $220 million multistate resolution with 36 attorneys general, representing 35 states and the District of Columbia, over allegations tied to OnStar Smart Driver. The insurance signal is narrower than the headline. It will last longer.

The state consent decree, using the Washington form as the reviewed instrument, has an effective date of November 30, 2026. It requires GM to obtain “affirmative express consent” before collecting, using, or disclosing covered driver data to a third party, subject to defined exceptions. Consent records must show the notice viewed and the time and date of consent. For usage based insurance, the required disclosure is explicit. Covered driver data “may be used for usage based insurance rates or coverage.”