What a connected car is and why manufacturers are building them
A connected car is a vehicle that uses built-in cellular or Wi-Fi to send and receive data — about its location, speed, fuel level, maintenance needs, or driver behavior — to the manufacturer, insurance companies, or third-party services. Unlike older cars that only communicated with a mechanic's diagnostic tool when something broke, connected cars transmit information continuously, whether you ask them to or not.
Manufacturers build connected cars because the data is valuable. They use it to improve vehicle design, offer remote services like unlocking your doors from your phone, send maintenance alerts before parts fail, and in some cases, adjust your insurance rates based on how you drive. The connectivity also enables features like real-time traffic updates, emergency information if you crash, and integration with your smartphone for navigation and music.
Most new vehicles sold today have some form of connectivity built in. Even if you do not subscribe to a manufacturer's service, the car may still collect and transmit data. Understanding what your car collects, where it goes, and who can see it is important because that information can reveal where you travel, when you are home, and patterns about your daily life.
Key Takeaways
- Connected cars collect location data, driving behavior, and vehicle diagnostics that are transmitted to manufacturers and sometimes to insurance companies or law enforcement.
- You can usually disable some data collection through your vehicle's settings menu, but turning off all connectivity may require disconnecting hardware or canceling a subscription service.
- Insurance companies increasingly offer usage-based programs that monitor your driving; participation is usually optional, but opting out may mean you pay higher premiums.
- Law enforcement and creditors can obtain location data from connected cars through court orders, and some manufacturers have shared data without warrants in the past.
- When you sell or trade in a connected car, the previous owner's data may remain accessible unless you explicitly request the manufacturer delete it or reset the vehicle.
What data connected cars collect and transmit
Connected cars typically collect location (GPS coordinates), speed, acceleration, braking patterns, fuel or battery level, tire pressure, engine temperature, and whether doors are locked. Many also record whether the driver is wearing a seatbelt, how hard they are pressing the accelerator, and how often they brake suddenly. Some vehicles log every destination you navigate to, every phone call you make through the car's system, and every song you play.
This data is transmitted to the manufacturer's servers, where it is stored indefinitely unless you request deletion. Some manufacturers also share data with insurance companies, roadside information providers, or law enforcement. For example, General Motors has shared location data with police without a warrant in some cases, and Hyundai and Kia have disclosed that their vehicles can be tracked through their mobile apps even when the owner is not using them.
The amount of data collected depends on your vehicle's model year and features. Older connected cars may transmit only diagnostic information and location during emergencies. Newer models, especially those with advanced driver information systems, may transmit dozens of data points every few seconds. Luxury and electric vehicles tend to collect more data than economy vehicles.
How to see what your car is collecting and limit transmission
Start by checking your vehicle's owner manual or the manufacturer's website to find the privacy policy and data collection settings. Most manufacturers have a dedicated section in the vehicle's touchscreen menu — often labeled "Privacy," "Connected Services," or "Data and Privacy" — where you can see which services are active and disable some of them.
The specific steps vary by manufacturer. In a Tesla, you can go to Controls > Service > Power Off to disable cellular connectivity temporarily, or go to Controls > Safety > Power Off to fully disconnect. In a Ford, you can disable the FordPass app's location tracking through the vehicle's settings menu. In a BMW, you can turn off "Connected Drive" services through the iDrive system. However, disabling one service does not always stop all data collection — some vehicles continue to transmit diagnostic data even when you turn off optional services.
If you want to stop all data transmission, you have a few options, though none are straightforward. You can cancel any paid subscription service (like OnStar or FordPass), which stops some transmission but usually not all. You can request the manufacturer delete your data by sending a written request to their privacy office — most will do this, though some take months to comply. You can also physically disconnect the vehicle's cellular modem, but this requires technical skill and may void your warranty or disable safety features like automatic crash notification.
Insurance companies and usage-based monitoring programs
Many insurance companies offer usage-based insurance programs — sometimes called "telematics" or "pay-as-you-drive" — that monitor how you drive and adjust your premium based on your behavior. These programs typically reduce your rate if you drive safely, but increase it if you speed, brake hard frequently, or drive at night.
Participation is usually optional, but opting out can mean you pay 10 to 30 percent more than drivers who enroll. Some insurers monitor through a plug-in device you install in your car's diagnostic port; others use your vehicle's built-in connectivity. A few insurers, like Progressive and Allstate, also use smartphone apps that track your location and driving even when you are not in the car.
Before enrolling in a usage-based program, read the insurer's privacy policy to understand how long they keep your data, who they share it with, and whether they use it for purposes beyond setting your rate. Some insurers have sold driving data to third parties, and some have shared it with law enforcement. If you enroll and later want to stop, you can usually cancel the program, but the data already collected may remain in the insurer's possession.
Who can access your car's location and data
Law enforcement can obtain your vehicle's location data through a court order, and in some cases without one. The FBI and other federal agencies have obtained location data from connected cars without warrants by claiming emergency circumstances. Some police departments have agreements with manufacturers that allow them to request data without going through the courts.
Creditors and debt collectors have also obtained location data from connected cars to track down borrowers who have defaulted on loans. If you financed your car through a lender, the loan agreement may include language allowing the lender to install a tracking device or access the vehicle's built-in location data if you fall behind on payments. Some lenders use this data to disable the car remotely or locate it for repossession.
Hackers and thieves can sometimes access connected car data if they break into the manufacturer's servers or intercept unencrypted transmissions. In 2015, researchers demonstrated that they could remotely control a Jeep's steering and brakes by hacking into its connected systems. While manufacturers have improved security since then, vulnerabilities are discovered regularly, and older vehicles may never receive security updates.
What happens to your data when you sell or trade in your car
When you sell or trade in a connected car, the previous owner's data — including location history, phone contacts, and navigation destinations — may remain accessible to the new owner through the vehicle's infotainment system. Some vehicles store this data locally on the car's hard drive; others keep it on the manufacturer's servers but link it to the vehicle's identification number rather than the owner's name.
Before selling or trading in your car, take these steps: First, go to the vehicle's settings menu and look for a "Factory Reset," "Clear Data," or "Remove User" option. This varies by manufacturer — some have a straightforward reset button, while others require you to navigate through multiple menus. Second, contact the manufacturer directly and request that they delete all data associated with your vehicle's identification number. Third, if you financed the car, contact your lender and ask them to remove any tracking devices or disable remote access.
Even after you take these steps, there is no may provide the data is fully deleted. Some manufacturers keep backups, and some do not delete data even when requested. If you are concerned about privacy, ask the dealership or private buyer to confirm in writing that they understand the vehicle may contain your previous data.
Understanding the trade-offs between convenience and privacy
Connected car features offer real benefits: emergency services can locate you if you crash, you can unlock your car remotely if you are locked out, and the manufacturer can alert you to maintenance issues before they become expensive repairs. These conveniences come at the cost of continuous monitoring and data collection.
There is no perfect solution. Disabling all connectivity means losing emergency features and real-time diagnostics. Keeping connectivity enabled means accepting that your location, driving behavior, and vehicle status are being collected and stored. The choice depends on what you value more — the convenience and safety features, or the privacy of knowing where you go and how you drive.
If you decide to keep connectivity enabled, the best approach is to understand what data your specific vehicle collects, read the manufacturer's privacy policy, disable optional services you do not use, and periodically request the manufacturer delete your data. If you are buying a new car, ask the dealer about the vehicle's data collection practices before you purchase, and factor that into your decision.
Frequently Asked Questions
Can I turn off all connectivity in my car without breaking anything?
You can disable most optional services through the settings menu without harming the vehicle. However, turning off all connectivity — including emergency services and diagnostics — usually requires physically disconnecting the cellular modem or canceling a subscription. This may disable features like automatic crash notification and remote unlocking. Check your owner's manual before attempting this, as some vehicles need connectivity for core functions.
Do I have to participate in my insurance company's usage-based program?
Participation is usually optional, but many insurers offer discounts for enrolling and charge higher rates for those who do not. If you decline, you will likely pay more. If you enroll and later want to stop, you can usually cancel, but the data already collected may remain with the insurer. Read the program's terms before enrolling to understand what happens to your data if you cancel.
Can police track my car without my permission?
Police can obtain your vehicle's location data through a court order. In some cases, federal agencies have obtained data without a warrant by claiming emergency circumstances. If your car is financed, your lender may have the right to track it under the loan agreement. If you are concerned about tracking, contact your manufacturer and lender to understand what data they can access and under what conditions.
What should I do before selling my connected car?
Use your vehicle's settings menu to perform a factory reset or clear user data. Contact the manufacturer and request they delete all data associated with your vehicle's identification number. If you financed the car, contact your lender and ask them to disable any remote access or tracking. Ask the new owner to confirm in writing that they understand the vehicle may contain your previous data.
Are connected cars more vulnerable to hacking than regular cars?
Yes. Connected cars have internet-facing systems that can be hacked if security is weak or outdated. Researchers have demonstrated remote control of steering, brakes, and other functions in some vehicles. Manufacturers have improved security, but older vehicles may never receive updates. If you are concerned about hacking, ask the dealer about the vehicle's security features and whether it receives regular software updates.