General Motors is facing a lawsuit in Iowa over allegations that it shared OnStar user data with third parties. The state's attorney general claims the company may have sold driving behavior data from thousands of residents to insurance companies.

According to the lawsuit, GM allegedly failed to fully disclose that information about speed, seatbelt use, driving habits, and vehicle location was being transmitted to data brokers like Verisk Analytics and Wejo, starting in 2015. This data could then be used by insurers to raise rates, deny coverage, or cancel policies.

The complaint also suggests some customers may have been misled about whether OnStar was required for certain safety features to function.

OnStar is available on Buick, Cadillac, Chevrolet, and GMC models, offering remote control, diagnostics, and emergency crash notifications. However, the expansion of telematics is raising significant questions about transparency and control over personal data.

This case could set a precedent for the entire industry, as modern ADAS systems and connected services actively collect and process vast amounts of data. With safety and digital feature requirements tightening, automakers will need to place greater emphasis on transparent data-handling policies.