Nebraska Attorney General Mike Hilgers has filed a lawsuit accusing General Motors and its telematics partner, OnStar, of secretly gathering driver behavior data without proper consumer consent and selling that information to insurers, which may have led to increased premiums for drivers.

According to the complaint, GM allegedly equipped its vehicles with telematics systems that tracked a variety of data points such as speed, seatbelt usage, driving patterns, and even geographic location—often without the driver’s full knowledge.
The lawsuit claims GM partnered with third-party firms to establish “telematics exchanges”—massive databases where the collected data was stored and used to generate personalized driving scores. These scores reportedly included identifiable details for millions of GM drivers and were based on factors the automaker deemed risky, including nighttime driving, seatbelt compliance, aggressive braking or acceleration, sharp cornering, and speeding above 80 mph.
Per the lawsuit, GM directed these third parties to make the telematics databases accessible to insurance companies. In turn, those insurers allegedly used the data to make coverage decisions—raising premiums, canceling existing policies, or denying new coverage altogether.
Related: Lawsuit Alleges OnStar and LexisNexis Shared Driver Info with Insurers, Leading to Rate Hikes
The Nebraska Attorney General asserts that more than 16 million GM drivers may have had their data accessed by insurers without adequate consent. Hilgers criticized the automaker for misleading customers about how their data would be used.
“Nebraskans have a right to transparency when they engage with businesses,” Hilgers said. “GM failed to be honest about how driver information would be used, and our office will not hesitate to hold powerful corporations accountable when they betray consumer trust.”
The legal filing also claims GM misled buyers during the vehicle purchase process by downplaying the extent of OnStar’s data tracking capabilities. In many cases, customers were allegedly led to believe OnStar enrollment was required for essential safety features.
Dealerships were reportedly encouraged to enroll new owners in OnStar without fully disclosing how the service worked—or in some cases, without obtaining any consent at all.
Nebraska’s lawsuit seeks financial penalties and compensation for affected residents across the state.


Privacy concerns like this are becoming more common. Hope this lawsuit brings transparency to data collection practices.
Important issue! Consumers need to know what data companies are collecting and how it’s used.
This case could set a big precedent for data privacy laws in the auto industry. Watching closely!