What Your Car Knows About You: How Vehicle Data Is Collected and Used

Article overview

• Discover how today’s cars track personal data through onboard computers, sensors and connected apps.
• Learn who can access your driving behavior and why it matters for privacy, advertising and even insurance rates.
• Follow practical steps to protect your personal information, especially in rental cars or when selling your vehicle.

Today, vehicles are more intelligent than ever. With computers, sensors and software that help with everything from parking to smartphone connectivity, modern cars and trucks make driving easier. But they also come with something many people don’t think about: personal data collection. Each time a driver starts their vehicle, it begins collecting and recording data. It adds up to create a profile of the car's owner and their passengers.

Most drivers aren’t aware of how much personal information their car collects. Some of this data helps improve safety features. In some cases, this data may be shared with third-party companies the driver is unaware of. Understanding what a car tracks, who sees the data, and how it is used can help drivers protect their privacy.

How is your personal data collected in vehicles?

Modern vehicles are built with computers and sensors to gather a wide range of information. These systems help with features like airbags and automatic braking and monitor the health of the vehicle’s parts to alert drivers if problems arise.

But car computers don’t just send out information; they take it in. Car computers also can communicate with devices that are plugged in or connected by Bluetooth. This means additional data can be collected from smartphones and connected devices.

Newer cars often gather even more data through advanced automation. Built-in apps and navigation systems may track preferences, driving behavior and frequent routes. Some apps suggest restaurants, hotels or gas stations based on where the driver is going. While these features add convenience, they also collect detailed personal information, sometimes without the driver realizing it.

Who has access to your driving information?

Today’s cars and trucks collect large amounts of data through their built-in systems, including how fast a driver goes, how hard they brake, and where they travel. While automakers use this data to improve performance and safety, there's the possibility they could also share it with outside companies.

These companies can include software developers, data processors and partners who use the information for things like advertising and research. Insurance companies sometimes gain access to this data, especially when drivers sign up for programs that track behavior in exchange for potential discounts.

Many drivers don’t realize how many parties might have access to their personal information. Privacy policies are often buried in fine print, making them difficult to read and easy to overlook. Verifying all entities with access to data, especially when signing up for new services or using connected apps, can help car owners make better decisions and protect their information.

The risks of sharing your driving data

Sharing driving data might not seem like a big deal, but it can lead to unexpected problems. One risk some drivers don't consider is how collected information affects car insurance.

As mentioned above, some insurance companies offer programs that use vehicle data or phone apps to monitor how safely a person drives. While safe drivers might see discounts, others may face higher rates if the system flags risky habits, even if the driver has never been in an accident.

Another risk is losing control over where that data ends up. Once data is collected, personal information may be distributed to other companies to build targeted ads or detailed profiles without the driver being completely aware. 

There’s also the very real danger of data breaches. If a company storing driving data is hacked, cybercriminals may gain access to trip history, contact information and, in some instances, your passwords, which sometimes leads to unwanted spam or even identity theft. These risks highlight the importance of understanding how vehicle data gets transmitted, and the steps drivers need to take to stay protected.

Steps to protect your personal data while driving

The first step to protecting privacy while driving is to check the car’s settings. Many vehicles have options on the dashboard or entertainment system, letting users select settings that limit tracked information.

Disable features like location sharing or driving history when not needed and disconnect unused services.

Drivers should also review the carmaker’s privacy policy, often found in the owner’s manual or located on the company website.

Some states have privacy laws that allow drivers to opt out of data-sharing programs that are otherwise required to accept the use of the services. However, this option may require filling out a form or calling customer service.

Be cautious when connecting personal devices to a vehicle. Phones and USB drives can transfer contacts, messages and app data into the car’s system; doing so puts the device's owner and their friends and family's contact information at risk if there is a breach. 

Be especially cautious while in a rental car. There is a risk via a car’s computer and when using a public USB plug because there's a slight possibility that hackers have attached malware and monitoring devices.

When connecting your laptop or cell phone to a car you don’t own, consider using Bluetooth instead of tethering via a cord. 

If you are selling or trading a vehicle or returning your rental car, be sure to wipe the system clean to remove any personal information saved on the system. 

While there is no 100% foolproof way to prevent a modern car's computer from collecting information, understanding how data is used and staying aware of privacy policies gives drivers greater control over their information.