Allstate sued by Texas over alleged driver tracking
Prosecutors allege Allstate secretly gathered driver data through mobile apps and vehicle manufacturers.
Allstate is facing a lawsuit from the state of Texas over claims that it secretly tracked millions of drivers through their mobile phones without consent. Texas Attorney General Ken Paxton alleges that the insurer collected location data through apps like GasBuddy and Life360 to create a vast driving behaviour database. The data was then used to raise insurance premiums, deny coverage, or sell to other insurers for profit.
The lawsuit also claims Allstate recently started purchasing vehicle location data directly from manufacturers, including Toyota, Mazda, and Stellantis brands like Jeep and Dodge. Texas accuses the company of violating state laws on data privacy and deceptive insurance practices. Prosecutors are seeking financial penalties, consumer restitution, and the destruction of unlawfully obtained data.
General Motors faced a similar lawsuit from Texas last year over allegations of secretly collecting and selling driver data. Allstate, headquartered in Illinois, has yet to respond to the claims. If found guilty, the company could face significant fines and legal consequences.
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