How to Stop Your Smart Car From Selling Your Driving Data to Insurance Companies
There’s something deeply unsettling about getting a letter from your insurance company offering a “discount” that you never asked for—only to realize they somehow know exactly how many times you’ve slammed on the brakes in the past month.
TL;DR
Smart cars, like most modern vehicles, collect detailed driving data that can be shared with insurance companies without your explicit knowledge. This data includes your speed, braking patterns, acceleration, cornering habits, and even the time of day you drive. While you can’t completely prevent your car from collecting data, you can stop it from being shared with insurers and third parties. This guide walks you through every step—disabling connected services, opting out of data sharing agreements, securing your privacy settings, and understanding your legal rights to protect your driving information from being sold.
Key Takeaways
- Smart cars share driving data with insurers through connected services and third-party data brokers
- Most data sharing is enabled by default in your vehicle settings
- You have the legal right to opt out of data sharing in many regions
- Disabling specific connected features can prevent data transmission
- Insurance companies may use your data to raise rates or deny coverage
- Regularly reviewing privacy settings is essential for ongoing protection
- Multiple layers of protection are needed for complete data privacy
Understanding How Smart Car Data Reaches Insurers
Your Smart car doesn’t directly sell data to insurance companies. Instead, the flow of information happens through several channels you might not expect.
The Data Pipeline
Step 1: Data Collection
Your Smart continuously collects driving data through its onboard computers. Every time you drive, the vehicle records:
- Your exact speed at every moment
- How hard you accelerate from stops
- How aggressively you brake
- How fast you take corners
- The time of day and day of week you drive
- How many miles you drive
- Where you drive (GPS coordinates)
Step 2: Data Storage
This information is stored in your car’s internal computer and transmitted to Smart’s servers when the vehicle connects to the internet.
Step 3: Data Aggregation
Smart partners with data brokers like LexisNexis, Verisk, and others who collect, combine, and package driving data from millions of vehicles.
Step 4: Data Selling
Insurance companies purchase this aggregated data. They use it to refine their risk models, adjust premiums, and sometimes target specific drivers.
Many Smart owners don’t realize that simply having a connected vehicle means their driving habits are being assessed by insurance companies without their direct involvement.
What Specific Data Insurers Want
| Data Type | Why Insurers Want It | Risk Score Impact |
|---|---|---|
| Hard braking events | Indicates following too closely or distraction | High negative impact |
| Rapid acceleration | Aggressive driving pattern | Moderate negative impact |
| Speeding | Higher accident risk | High negative impact |
| Late-night driving | Higher accident rates at night | Moderate negative impact |
| Mileage | More driving = more risk | Direct premium impact |
| Cornering speed | Risk-taking behavior | Moderate negative impact |
Step-by-Step: Stop Data Sharing in Your Smart
Step 1: Disable Connected Services
Your Smart has multiple connected services that transmit data. You need to address each one.
Accessing Settings:
- Turn on your Smart and access the infotainment screen
- Navigate to Settings (gear icon)
- Select Privacy or Data Privacy
- Look for Connected Services or Data Sharing
What to disable:
- Automatic Data Transmission – This is the master switch for data sharing
- Diagnostic Data – Health reports sent to Smart
- Improvement Programs – Often justifies data collection
- Marketing Partnerships – Data sold to third parties
Important confirmation:
After making changes, the system should confirm that data sharing is disabled. If you don’t see a confirmation, the settings may not have saved correctly.
Step 2: Disable Location Tracking
Your GPS data is valuable to insurers because it reveals where and when you drive.
Location Settings:
- Settings > Privacy > Location Services
- Toggle off Location Sharing
- Disable Connected Navigation if not needed
- Turn off Traffic Services if they require location data
Optional but recommended:
- Clear your navigation history
- Delete saved destinations
- Disable “prediction” features that learn your routes
Smart owners often find that disabling location services is the single most effective step for protecting privacy.
Step 3: Disable Driving Behavior Analysis
Newer Smart models have features that specifically analyze and share driving behavior.
For Smart #1, #3, and #5 owners:
- Settings > Safety & Assistance
- Find Driving Behavior Analysis or Driving Coach
- Disable data collection
- Turn off Efficiency Coaching (often collects acceleration/braking data)
- Disable Aggressive Driving Detection if available
For older Smart Fortwo (453) owners:
- Settings > Vehicle > Driver Profile
- Disable Driving Style Tracking
- Turn off Trip Analysis features
- Opt out of any “learning” features
Step 4: Disable Smart App Permissions
The smartphone app connected to your Smart is a major data pathway.
On your smartphone:
iPhone Users:
- Settings > Privacy & Security
- Location Services > Smart App > Never
- Motion & Fitness > Toggle off for Smart App
- Bluetooth > Disable for Smart App
Android Users:
- Settings > Apps > Smart App
- Permissions > Location > Deny
- Storage > Deny (prevents local data collection)
- Microphone > Deny (if applicable)
In the Smart App itself:
- Open the Smart Connect app
- Settings > Privacy
- Disable all data sharing options
- Turn off “Improve Our Services”
- Disable “Share with Partners”
Step 5: Opt Out of Data Broker Programs
This is where you directly stop insurance companies from getting your data.
LexisNexis (most common):
- Visit LexisNexis Consumer Center website
- Request your report (they’re required by law to provide it)
- Review what data has been collected
- Submit a dispute to correct or remove data
- Request restriction on data sharing
Verisk Analytics:
- Visit Verisk Insurance Score website
- Request your driving history report
- Review for accuracy
- Submit correction requests
- Request data deletion
Opt-Out Instructions:
- You must request reports from each data broker
- Each request may take 30 days to process
- Keep copies of all correspondence
- Request confirmation of data removal
Legal Rights to Protect Your Data
Your Rights by Region
European Union (GDPR):
- Right to Access – Free copy of all personal data
- Right to Rectification – Correct inaccurate data
- Right to Erasure – Request complete data deletion
- Right to Restrict Processing – Limit how data is used
- Right to Object – Stop data processing entirely
- Right to Data Portability – Move data to another service
California (CCPA):
- Right to Know – What data is collected and shared
- Right to Delete – Request data removal
- Right to Opt-Out – Stop sale of personal information
- Right to Non-Discrimination – Service refusal protection
Other US States:
- Limited rights – Some states have minimal protections
- Manufacturer policies – May offer additional options
- Contract review – Check vehicle purchase agreements
How to Exercise Your Rights
Requesting Your Data:
- Write to Smart’s privacy team (email preferred for documentation)
- Specify exactly what data you want
- Include your VIN (Vehicle Identification Number)
- Provide proof of identity
- Demand response within legal timeframe
Sample Request Letter:
“I am exercising my right to access all personal data collected about me through my Smart vehicle (VIN: [insert]). I request a complete copy of my driving data, location history, and any data shared with third parties. Please provide this information within the legal timeframe and confirm data deletion of non-essential records.”
If Your Request Is Denied:
- File a complaint with your data protection authority
- In the EU: Contact national GDPR enforcement body
- In the US: File complaint with FTC or state attorney general
- Consider legal advice for serious violations
Common Insurance Data Collection Myths
“My insurance company doesn’t have my data unless I signed up.”
False. Insurance companies purchase driving data from brokers regardless of your direct consent. Your connected Smart vehicle shares data by default.
“I don’t have any telematics devices, so they can’t track me.”
True only for older cars. Modern Smart vehicles have built-in connectivity and continuously transmit data without requiring an external device.
“I opted out of marketing emails, so I’m protected.”
Completely false. Marketing opt-outs and data-sharing opt-outs are entirely different settings. You must disable both separately.
“Electric cars don’t share driving data.”
False. Smart’s electric models (Smart #1, #3, #5) collect even more detailed data about driving efficiency, charging habits, and range usage—all valuable to insurers.
Many Smart owners mistakenly believe that because they declined a usage-based insurance program, their driving data isn’t being shared. The reality is far different.
Protecting Yourself Beyond Settings
Insurance Shopping Strategies
When getting quotes:
- Ask explicitly: “Do you use driving data from data brokers?”
- Demand: “Can you guarantee my rates won’t be affected by external data?”
- Check: Review your insurance policy’s data usage clauses
- Consider: Choosing insurers who don’t use telematics data
Insurance companies to avoid:
- Companies pushing “usage-based” insurance programs
- Insurers partnered with LexisNexis or Verisk
- Any company requiring telematics devices for “discounts”
Insurance companies to consider:
- Companies using traditional risk models
- Insurers relying on credit scores only (check your state)
- Companies offering “pay as you drive” only when you explicitly enroll
When Buying a Used Smart Car
Data protection when purchasing a used vehicle:
Before Purchase:
- Request that the dealer perform a factory reset
- Verify all connected services are disabled
- Confirm that the previous owner’s data has been removed
- Get written confirmation of data deletion
Immediately After Purchase:
- Perform your own factory reset
- Change all connected accounts
- Review ALL privacy settings
- Disable automatic data sharing
- Clear all navigation history
From the Moment You Drive Off:
- Don’t connect your smartphone yet
- Set up your own driver profile
- Disable data sharing before pairing phone
- Consider using a separate “car only” account
Creating a Comprehensive Privacy Protection Plan
Monthly Privacy Review
Week 1: Vehicle Settings Check
- Review data sharing settings
- Verify location services status
- Check connected services permissions
- Ensure OTA (Over-the-Air) updates don’t reinstate permissions
Week 2: App and Smartphone Check
- Review Smart app permissions
- Check for automatic app updates that may change permissions
- Verify Bluetooth settings
- Clear app cache and data
Week 3: Data Broker Check
- Request updated reports quarterly
- Review for any new data sharing
- Dispute any inaccurate information
- Confirm opt-out status
Week 4: Insurance Company Check
- Review policy renewal notices
- Check for any new data sharing clauses
- Verify insurer isn’t using telematics data
- Get quotes from alternative insurers
Signs Insurance Companies Are Using Your Data
Warning signs to watch for:
- Rate increase after a period of no claims
- Premium adjustment following a long trip
- “Personalized” offers based on your driving
- Questions about driving habits you didn’t disclose
- Unexpected denial of coverage
- Referral to “specialty” insurance programs
Smart owners who notice unexplained premium changes should immediately request their LexisNexis report to see what data has been shared.
Advanced Protection Strategies
Using a Privacy-Focused Approach
Disable Connectivity Entirely:
This is extreme but effective for maximum privacy:
- Pull the data connection fuse (check owner’s manual)
- Disable over-the-air updates
- Remove smartphone pairing
- Use offline navigation exclusively
- Accept that some features won’t work
Drawbacks:
- No navigation updates
- No remote app features (EV charging control lost)
- No emergency calling (eCall disabled)
- Reduced vehicle resale value
Privacy-Focused Driving Habits
Minimize data collection through behavior:
- Drive at consistent, reasonable speeds
- Avoid harsh braking and acceleration
- Limit late-night driving
- Reduce driving frequency
- Use car-sharing apps instead of owning
Consider parking strategies:
- Park in areas with limited connectivity (underground garages)
- Remove connectivity before long-term parking
- Use faraday bags to block signals when parked at home
Frequently Asked Questions
Can I completely prevent my Smart car from sharing driving data?
You can significantly reduce data sharing, but completely preventing all data collection requires extreme measures like disabling vehicle connectivity, which affects essential safety features.
Does Smart sell driving data directly to insurance companies?
Smart doesn’t directly sell data to insurers but shares with data brokers like LexisNexis, who then provide it to insurance companies.
How do I know if insurance companies have my driving data?
Request your free LexisNexis driving report and Verisk report. They’re required to provide copies of your data by law.
Will turning off data sharing affect my insurance rates?
It can prevent negative adjustments but won’t necessarily lower rates. Some insurers may offer discounts for sharing data, which you’d lose.
Can I sue if my data is shared without my consent?
You may have legal grounds in jurisdictions with strong privacy laws like GDPR. In the US, it’s more challenging but possible in certain states.
Is Smart allowed to share my data without telling me?
In many jurisdictions, they’re required to disclose data sharing in privacy policies. However, the default settings often enable sharing without explicit consent.
What’s the fastest way to stop data sharing?
Disabling all connected services in your vehicle settings, immediately followed by opting out of data broker programs. This combination provides the quickest protection.
Final Thoughts
Your driving data is valuable—valuable to you, valuable to Smart, and especially valuable to insurance companies. Taking control of this data requires effort, but the peace of mind is worth it. Don’t assume your privacy is protected just because you never signed up for a telematics program.
The most effective protection is layered. Disable connected services, opt out of data brokers, review settings monthly, and stay informed about your rights. Your insurance rates shouldn’t be determined by data you never agreed to share.
Have you discovered your driving data being used by insurance companies? Share your story and how you handled it in the comments below.
References
Privacy, Data Protection, and Insurance Resources:
