The state of Texas has filed a lawsuit against Allstate, alleging the insurance company illegally collects driver data through secretly embedded software in mobile apps and then uses the data to justify raising Texans’ insurance rates.
Texas Attorney General Ken Paxton said Allstate and its subsidiary, Arity, have collected trillions of miles worth of location data from over 45 million customers nationwide to create the “world’s largest driving behavior database.” Texas alleges Allstate would use data to inform its underwriting as well as sell the driving behavior data to third parties, including other car insurance