Allstate Accused Of Using Apps Like Gasbuddy To Spy On Drivers And Raise Rates
The lawsuit says Allstate paid app developers millions of dollars to install its tracking software.
Popular apps, including Routely, Life360, GasBuddy, and Fuel Rewards, allegedly track drivers.
The insurer says its gathering data practices fully comply with all laws and regulations.
Insurance heavyweight Allstate and its subsidiary, Arity, are under fire in a new lawsuit filed by the state of Texas. The state accuses the company of illegally tracking driving behaviors by “secretly embedding” software in mobile apps, using this covertly gathered data to justify raising insurance rates or cancel policies for Texans.
According to the lawsuit, Allstate has reportedly collected a staggering “trillions of miles” worth of driving data, building what it calls the “world’s largest driving behavior database.” This massive repository is said to contain detailed information on more than 45 million Americans.
How Did Allstate Do It?
The lawsuit claims that Allstate paid app developers millions of dollars to surreptitiously integrate its tracking software into popular apps. These mobile applications include Routely, Life360, GasBuddy, and Fuel Rewards. By targeting apps that already required location information to function properly , Allstate reportedly piggybacked on their pre-existing systems to collect driving-related analytics through its analytics subsidiary, Arity.
Through these apps, Allstate gained access to a phone’s geolocation through GPS, accelerometer data, magnetometer data, and gyroscopic data. Essentially, the company could track nearly every movement—altitude, latitude, longitude, speed, and more. Beyond underwriting its own insurance policies, the lawsuit claims Allstate also sold this trove of driving information to other insurance companies.
Pricey Premiums, Courtesy of Your Phone
Once a driver’s data was collected, the information allegedly became a critical factor in how Allstate determined their insurance coverage. The lawsuit claims the company used the data to justify “increasing their car insurance premiums, denying them coverage, or dropping them from coverage.”
This isn’t the only way Allstate accesses data about the driving behavior of its customers. Texas Attorney General Ken Paxton also alleges that the insurer has purchased driving data from brands including Toyota, Lexus, Mazda, Chrysler, Dodge, Fiat, Jeep, Maserati, and Ram. In other words, even if you weren’t sharing your data through an app, there’s a chance your car was doing it for you.
Is It Legal?
Paxton isn’t convinced. “Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate’s tracking software,” he said in a statement. “The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law. Texans deserve better and we will hold all these companies accountable.”
The state of Texas is seeking a jury trial, and Paxton wants the court to block Allstate from gathering and using customer data. He also wants the company to be fined thousands of dollars per customer—a punishment that could add up quickly given the scale of the allegations.
A representative for Allstate defended the company in a statement to The New York Times, asserting the legality of its practice. “Arity helps consumers get the most accurate auto insurance price after they consent in a simple and transparent way that fully complies with all laws and regulations.”
Whether Allstate’s actions ultimately comply with the law or not, this case adds to the growing pile of examples that highlight the murky and often exploitative practices surrounding how consumer data is collected, monetized, and sold. It raises serious concerns about whether the average driver has any clue what they’re unwittingly agreeing to when downloading an app or driving a connected car.
