The state of Texas has filed a lawsuit against Allstate, accusing the insurer of illegally tracking drivers through their cell phones without their consent. Texas Attorney General Ken Paxton claims that Allstate created “the world’s largest driving behavior database” by paying mobile app developers millions of dollars to secretly incorporate tracking software into apps. The lawsuit, filed in a Texas state court near Houston, alleges that Allstate used the data to justify raising car insurance premiums, denying coverage, and selling the data to other insurers.
The tracking software, developed by Allstate’s data analytics unit Arity, was integrated into widely used apps such as Fuel Rewards, GasBuddy, Life360, and the Allstate-owned Routely starting in 2015. The complaint further asserts that Allstate has also purchased location data directly from vehicle manufacturers, including Toyota, Lexus, Mazda, and Stellantis, to track the movements of policyholders more accurately.
The lawsuit alleges that Allstate’s actions violated Texas laws on data privacy, data brokers, and unfair and deceptive practices by insurers. Texas is seeking restitution, civil fines up to $10,000 per violation, and the destruction of illegally collected data. The state also contends that Allstate profited from this practice by increasing premiums and denying coverage based on the collected data.
This lawsuit follows a similar case filed last August against General Motors, accusing the company of collecting driver data from over 14 million vehicles and selling it to insurers and other businesses without drivers’ consent.