The suit mentions a report from the New York Times that found that many drivers are reluctant to enroll in UBI programs, however, vehicle manufacturers have found a way to work around that. (Credit: ZinetroN/Adobe Stock)
Toyota, Progressive Insurance and Connected Analytic Services (CAS) are facing a class action lawsuit filed in an East Texas court alleging unauthorized collection and dissemination of drivers’ private data.
The suit claims that for years Toyota and CAS have been collecting data from the class members’ vehicles and selling it to third parties, like Progressive. This included personal and location data as well as vehicle data, which includes things like speed, direction, braking and swerving.
Toyota and Progressive have partnered on usage-based insurance (UBI) for several years, with a press release from Progressive explaining, “Toyota owners who consent to share driving data from vehicles equipped with Toyota data communication modules will have the opportunity to share their information with Progressive for a potential discount on their auto insurance. This benefit extends to any Toyota customer who purchases a 2018 or newer Toyota Camry, RAV4 or other vehicle model equipped with the latest connected vehicle technology… Coming soon, more models will have the advanced technology to share data for Usage Based Insurance.”
However, the lawsuit alleges that in addition to non-personal data like fuel efficiency and tire pressure, today’s auto manufacturers also collect sensitive personal information, including GPS locations, frequently used routes, phone calls and music preferences.
The suit mentions a report from the New York Times that found that many drivers are reluctant to enroll in UBI programs, however, vehicle manufacturers have found a way to work around that by collecting data directly from vehicles and offering it for sale to insurers or data brokers. This negates the need for the owner’s knowledge or consent.
Progressive widely touts its UBI-based Snapshot program, which it says allows drivers to personalize their auto insurance rate based on how they actually drive. “That means you pay based on how and how much you drive instead of just traditional factors,” the insurer’s website states. “In most states, you get an automatic discount just for participating and a personalized rate at renewal depending on your results.”
Snapshot is an opt-in data collection program, which Progressive says requires a driver’s consent before any data sharing occurs, but the lawsuit claims otherwise.
The suit reads, in part: “Progressive promotes Toyota’s involvement in the Snapshot data sharing scheme as follows: Toyota owners who consent to share driving data from vehicles equipped with Toyota data communication modules will have the opportunity to share their information with Progressive for a potential discount on their auto insurance. This benefit extends to any Toyota customer who purchases a 2018 or newer Toyota Camry, RAV4 or other vehicle model equipped with the latest connected vehicle technology.”
This, the suit claims, shows that both Toyota and Progressive acknowledge that those who purchased 2018 or newer Toyota vehicles may have their driving data shared with the insurer.
CAS, a consumer reporting agency and data aggregator that processes data from vehicles equipped with telemetric devices, allegedly handled the transfer of driver data from partners like Toyota to insurance carriers like Progressive.
The suit cites CAS’s website as evidence of its data-sharing practices, which acknowledges that with owner consent, driving behavior data will be provided to insurance carriers at the time the driver receives an insurance quote. It also states that insurers can provide customers with the ability to consent to sharing their vehicle data on an ongoing basis with no aftermarket or mobile devices required.
Original plaintiff Philip Siefke filed the suit because of his experience acquiring an insurance quote for his newly purchased 2021 Toyota RAV4 XLE in January 2025. Siefke claims that when trying to sign up for a policy on Progressive’s website, he chose to opt out of the Snapshot program even though his RAV4 was equipped with telemetric technology.
After opting out of the program, Siefke says a pop-up window appeared in the background that notified him Progressive was already in possession of his driving data up to January 20, 2025. A Progressive customer service representative informed him that the insurance company obtained his data from the tracking technology installed in his vehicle.
Soon after speaking with Progressive, the plaintiff called Toyota’s customer service to ask why his data was being shared without permission.
The suit states: “The Toyota CSR informed Plaintiff that when he purchased his Toyota vehicle, he unknowingly signed up for a trial of sharing his Driving Data captured by the Tracking Technology installed in Plaintiff’s Toyota vehicle and that Plaintiff had to opt out of the data sharing.”
However, Siefke claims he never received notice of his need to opt out of data sharing with Toyota.
“The Toyota CSR also advised Plaintiff to check his Toyota mobile phone application to verify whether he was indeed participating in Toyota’s telemetry data sharing scheme,” the suit continues. “Upon checking the Toyota application on his mobile phone, Plaintiff had been opted out of Toyota’s data sharing scheme, contrary to the Toyota CSR’s representation that Plaintiff signed up for the data sharing scheme.”
In a later phone call with a Progressive customer representative, they informed Siefke that Progressive obtains driver data from CAS.
Those eligible for the class action include all individuals in the U.S. who owned or leased a model-year 2018 or newer Toyota vehicle equipped with tracking technology.
The suit seeks relief including:
- An order barring the defendants from continuing to collect the personal and vehicle data of class members and either storing it or selling it to third parties;
- A mandatory injunction requiring the defendants to delete the data they’ve already “unlawfully” collected;
- An award of damages, including actual, nominal, consequential and punitive, with the amount to be determined; and
- An award of pre and post-judgment interest, attorneys’ fees, costs expenses and interest.
The full complaint can be found here.
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