A connected car uses wireless networks to send and receive data while you drive

A connected car is a vehicle that links to the internet through cellular, Wi-Fi, or satellite connections. It collects information about how you drive, where you go, your vehicle's condition, and sometimes who is inside it — then transmits that data to the manufacturer, insurance companies, app developers, or other third parties.

This is different from straightforward having a smartphone in your car. The connection is built into the vehicle itself. Your car may send data continuously, at set intervals, or when you trigger certain features. You may not see it happening, and you may not have a straightforward way to turn it off completely.

Connected cars range from basic (a vehicle that reports maintenance alerts to the manufacturer) to extensive (a car that tracks your location, speed, braking patterns, and fuel use in real time). Most new vehicles sold today have at least some connected features.

Key Takeaways

  • Connected cars transmit data about your location, driving habits, vehicle condition, and sometimes occupants to manufacturers and third parties you may not know about.
  • Insurance companies use connected car data to adjust your rates, and some policies require you to install a tracking device or allow data sharing as a condition of coverage.
  • You have limited control over what data your car collects and shares, though some manufacturers allow you to opt out of certain features through settings or by contacting them directly.
  • Data breaches, hacking, and unauthorized access to your car's location or controls are real risks that vary by manufacturer and the security measures they use.
  • Resale value, trade-in negotiations, and your ability to repair your own vehicle can all be affected by connected car systems and the data they hold.

How manufacturers and insurers use your driving data

Automakers collect connected car data for several stated purposes: diagnosing mechanical problems, improving safety features, and enhancing customer service. In practice, they also use it to understand driving patterns, test autonomous features, and sell anonymized data to third parties including traffic analysis firms, urban planners, and advertisers.

Insurance companies have a more direct financial interest in your data. Some insurers offer usage-based insurance programs — often called telematics programs — that monitor how fast you drive, how hard you brake, what time of day you drive, and how many miles you travel. If you drive safely by their metrics, you may receive a discount. If you don't, your rate may increase or your policy may be cancelled.

Some of these programs are voluntary; others are becoming a condition of getting a quote or maintaining coverage. The insurer may require you to install a separate device in your car, or they may access data your car is already sending to the manufacturer. You typically have to consent to this in writing, but the consent form is often buried in policy documents or terms of service that run dozens of pages.

What data your car collects and who can see it

The specific data varies by vehicle, but common categories include: your location (GPS coordinates, sometimes updated every few seconds); speed and acceleration; braking force; fuel consumption; which doors are open; whether your seatbelt is fastened; airbag deployment; engine diagnostics; and in some cases, audio or video from inside the cabin.

Manufacturers typically retain this data on their servers. They may share it with:

  • Insurance companies (if you consent or if your policy requires it)
  • Law enforcement (sometimes without a warrant, depending on the manufacturer's policy and the jurisdiction)
  • Third-party app developers (if you use connected services like navigation or remote start)
  • Data brokers and analytics firms (usually in anonymized or aggregated form, though re-identification is sometimes possible)
  • The vehicle's new owner (if you sell or trade in the car)

You may not know which third parties have access or what they do with the information. Manufacturer privacy policies often state that they can change how they use data with little notice, and that they may share it for purposes beyond the original reason you consented.

Your options for limiting data collection and sharing

Your ability to control connected car data depends on the manufacturer and the specific features. Some vehicles allow you to disable certain functions through the infotainment system settings. Others do not offer a user-facing option, and you must contact the manufacturer directly to request data deletion or opt-out.

Common steps include:

  • Reviewing your vehicle's owner manual or manufacturer website for privacy settings and data management options
  • Contacting the manufacturer's customer service to ask which data is collected, where it is stored, and how to request deletion
  • Declining to enroll in connected services you do not need (navigation apps, remote start, emergency information)
  • Refusing to consent to insurance company data access if your policy allows it, though this may result in higher rates or policy cancellation
  • Asking your dealer at purchase or trade-in what data is on the vehicle and requesting it be wiped before handoff

Even if you disable features, your car may still collect and transmit some data — such as diagnostic information needed for warranty coverage or safety recalls. Complete data isolation is rarely possible without disconnecting the vehicle from the manufacturer's network entirely, which may void warranty coverage or prevent you from using safety features.

Security risks and what happens if your car is hacked

A connected car is a computer on wheels, and computers can be compromised. Hackers have demonstrated the ability to remotely access vehicle systems, unlock doors, disable brakes, and track location. The severity of these risks depends on the manufacturer's security practices, how quickly they patch vulnerabilities, and whether your vehicle receives regular software updates.

Most manufacturers issue over-the-air updates to fix known security flaws, but not all vehicles receive them at the same pace. Older models may stop receiving updates entirely. If a vulnerability is discovered after your car stops receiving patches, you have no way to protect yourself except by taking the vehicle to a dealer for manual updates — which not all dealers offer or prioritize.

Data breaches are also a risk. Manufacturers store millions of records containing location history, driving patterns, and sometimes phone numbers or email addresses. If a breach occurs, your data may be exposed to criminals who can use it for stalking, blackmail, or identity theft. Manufacturer responses to breaches vary widely; some notify customers quickly and offer credit monitoring, while others delay disclosure or do not notify at all.

How connected car data affects insurance rates and coverage

If you enroll in a usage-based insurance program, the insurer will track your driving and may adjust your rate based on the data. Some programs offer discounts of 10 to 30 percent for safe driving, but others use the data primarily to identify high-risk drivers and raise their rates or cancel their policies.

The metrics insurers use are not always transparent. One insurer may reward you for driving at night; another may penalize you. One may focus on hard braking; another may weight speeding more heavily. You may not know how your rate was calculated or what specific behavior triggered an increase.

If you refuse to allow data sharing, some insurers will straightforward charge you a higher base rate or decline to offer you coverage. This creates a practical pressure to consent even if you prefer privacy. In some states, regulators have begun requiring insurers to disclose how they use data and to offer opt-out options, but these protections vary by location and are still evolving.

Connected cars and vehicle repair, resale, and ownership

Connected car systems can complicate repairs and resale. Some manufacturers restrict which repair shops can access diagnostic data, pushing owners toward dealerships for service. This limits your choice of mechanic and can increase repair costs.

When you sell or trade in a vehicle, the data stored on it — location history, phone contacts synced to the infotainment system, driving patterns — may transfer to the new owner unless you explicitly request deletion. Dealers do not always wipe this data, and some owners have discovered previous owners' personal information in their newly purchased vehicles.

Manufacturers also use connected car data to make decisions about warranty coverage, recalls, and software updates. If your data shows you drove through deep water or off-road, the manufacturer may deny a warranty claim even if the damage seems unrelated. This gives manufacturers leverage over how you use your own vehicle.

Frequently Asked Questions

Can I disconnect my car from the internet entirely?

Physically, yes — you can disable Wi-Fi and refuse to pair your phone. However, many vehicles use cellular connections built into the hardware that you cannot turn off without voiding your warranty or losing access to safety features like emergency information. Check your owner's manual or contact the manufacturer to learn what is mandatory versus optional.

Do I have to consent to insurance company tracking?

It depends on your insurer and your state. Some insurers make tracking a condition of coverage; others offer it as optional with a discount. A few states require insurers to offer a non-tracked option at a reasonable rate. Review your policy documents or call your insurer to ask what options are available to you.

What should I do before selling or trading in my car?

Contact the manufacturer and ask them to delete all stored data from the vehicle. Also ask the dealer to confirm the data has been wiped before you hand over the keys. Request written confirmation. This protects your privacy and prevents the new owner from accessing your location history or personal information.

How do I know if my car has been hacked?

Signs include unexpected door locks or unlocks, infotainment system malfunctions, warning lights that appear and disappear, or location data that shows your car was somewhere you did not drive it. If you suspect a breach, contact the manufacturer when ready and consider taking the vehicle to a dealer for a security inspection.

Can I see what data my car is collecting about me?

Most manufacturers do not provide a straightforward dashboard showing all collected data. You can request a data report from the manufacturer under privacy laws like the California Consumer Privacy Act or similar state laws, but the process varies and may take weeks. Start by contacting the manufacturer's privacy office or customer service and asking what data they hold about you and your vehicle.