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 your location, driving patterns, fuel level, maintenance needs, and sometimes your speed and braking. The car talks to the manufacturer's servers, to your smartphone, and sometimes to other vehicles or road infrastructure. This happens whether you actively use the features or not.
Manufacturers build connected cars because the data is valuable to them. They can sell it to insurance companies, traffic services, and advertisers. They can push software updates remotely, lock or unlock your car from their app, and track its location if it's financed through them. They can also use the data to improve future vehicle designs and to defend themselves in accident lawsuits by showing what the car was doing at the moment of impact.
For you, a connected car means convenience features like remote start, navigation that knows traffic conditions in real time, and automatic crash notification. It also means your driving data is being collected, stored, and sometimes shared — and you have limited control over what happens to it.
Key Takeaways
- Connected cars collect location, speed, braking, fuel level, and driving pattern data continuously, whether you use the features or not.
- Manufacturers can sell this data to insurance companies, advertisers, and traffic services, and most privacy policies allow this.
- Convenience features like remote start and real-time navigation require the connection, but so does the data collection.
- Disconnecting from the service usually means losing both the features and the tracking, though some cars make this difficult or impossible.
- Insurance companies can use connected car data to adjust your rates, and some offer discounts if you let them monitor your driving.
What data a connected car collects and where it goes
Every connected car collects location data — your GPS coordinates, how fast you're going, how hard you're braking, how often you accelerate, and where you park. It also collects vehicle diagnostics: fuel level, tire pressure, engine temperature, maintenance schedules, and error codes. Some cars record whether you're wearing your seatbelt, how many passengers are in the car, and even your steering wheel movements.
This data flows to the manufacturer's servers. From there, the manufacturer's privacy policy determines what happens next. Most policies state that the manufacturer can share data with "service providers" — which includes insurance companies, traffic data companies, and data brokers. Some manufacturers sell anonymized or de-identified data; others sell data that can be linked back to you. A few manufacturers have been caught selling location data to data brokers, who then sell it to bail bondsmen, repossession companies, and private investigators.
Your smartphone also receives some of this data if you use the manufacturer's app. The app itself may collect additional information — how often you check it, what features you use, your phone's location when you're not in the car. This data is subject to the app's privacy policy, which is often separate from the car's privacy policy and may be more permissive about sharing.
Connected car features that require the data connection
Remote start, unlock, and lock are the most visible features. You can start your car from your phone before you leave work, or unlock it from your driveway. These require the car to be constantly connected and listening for commands from the manufacturer's servers.
Real-time navigation and traffic updates require a live connection to traffic data services. Your car sends its location to the service, receives current traffic conditions, and reroutes you automatically. This is more accurate than phone-based navigation because it happens in the car itself, but it means your location is being transmitted continuously while you drive.
Automatic crash detection and emergency calling (sometimes called eCall in Europe) use the connection to alert emergency services and the manufacturer if the car detects a crash. This feature can save your life, but it also means the car is sending crash data — including your location, speed, and direction of impact — to the manufacturer's servers within seconds of an accident.
Over-the-air software updates let the manufacturer push patches and new features to your car without you visiting a dealership. This is convenient, but it also means the manufacturer can change how your car behaves without your explicit consent, and you cannot easily roll back to an older version if an update causes problems.
How connected car data affects your insurance rates
Insurance companies have two ways to access connected car data. The first is direct: some insurers have partnerships with manufacturers and can request your data directly from the manufacturer's servers if you consent. The second is indirect: you can install a telematics device in your car (or use your phone) that the insurer monitors, and they use that data to adjust your rates.
Insurers use this data to calculate what they call your "driving score" — a number based on how fast you drive, how hard you brake, how often you accelerate, and what time of day you drive. Some insurers offer discounts of 10 to 30 percent if your score is high. But the same data can be used to raise your rates if your score is low, and some insurers have been accused of using it to deny coverage altogether to drivers in certain neighborhoods.
The catch is that you may not know your score, how it's calculated, or how it's being used. Your insurer may share it with other insurers, and it can follow you even if you switch companies. Some states require insurers to disclose how they use telematics data, but most do not.
Disconnecting from a connected car service
Most manufacturers allow you to opt out of data collection through their privacy settings or app. However, opting out usually means losing the convenience features as well — no remote start, no real-time navigation, no automatic crash detection. Some manufacturers make opting out difficult by burying the setting in a menu or requiring you to call a dealership.
A few manufacturers have made it nearly impossible to disconnect. Some cars will not function properly without an active connection, or they will nag you constantly to reconnect. Some require you to pay a monthly subscription to keep the connection active, and if you stop paying, the car may disable certain features or refuse to start.
If you want to disconnect but keep some features, you have limited options. You can use your smartphone for navigation instead of the car's built-in system, which means you're trading one data collector (the manufacturer) for another (Google, Apple, or Waze). You can disable location services on your phone, but this breaks navigation and some safety features. You cannot disable the car's own location tracking without physically removing or disabling the cellular modem, which may void your warranty or break features you want to keep.
What to look for when buying a connected car
Before you buy, read the manufacturer's privacy policy — not the summary, but the full policy. Look for what data is collected, who it's shared with, how long it's kept, and whether you can delete it. Check whether the manufacturer sells data to third parties, and whether they allow data brokers or law enforcement to access it without a warrant.
Ask the dealership whether the car requires a subscription to keep the connection active, and what features are disabled if you don't pay. Ask whether you can opt out of data collection without losing safety features like crash detection. Ask whether the manufacturer has a history of selling location data — you can search for this on news sites and privacy advocacy websites.
Compare the privacy policies of different manufacturers. Some are much more restrictive about sharing data than others. Some allow you to delete your data on request; others keep it indefinitely. Some let you see what data they've collected about you; others do not.
If privacy is a priority, ask whether the manufacturer offers a version of the car with fewer connected features, or whether you can buy a car without the cellular modem installed. Some manufacturers do offer this, though it may limit your options or cost more.
The difference between connected cars and autonomous vehicles
A connected car is not the same as an autonomous vehicle. A connected car can talk to the internet and other devices, but you still drive it. An autonomous vehicle drives itself and uses connectivity to receive updates and send data about road conditions. Most autonomous vehicles are also connected cars, but not all connected cars are autonomous.
The distinction matters because autonomous vehicles collect even more data than connected cars — they record video from multiple cameras, radar data, and detailed information about every decision the vehicle made. This data is even more sensitive than location and speed, because it can be used to reconstruct your entire trip and infer where you were going and why.
Frequently Asked Questions
Can I turn off the cellular connection in my connected car?
Most cars allow you to disable the connection through the settings menu, but this usually disables convenience features like remote start and real-time navigation. Some cars make this difficult or require you to visit a dealership. Check your owner's manual or call the dealership before you buy to find out whether your specific model allows this.
Will my insurance company know if I disconnect from my car's data service?
Not unless you tell them or they have a separate agreement with the manufacturer. However, if your car is financed, the lender may require you to keep the connection active so they can track the car's location. Check your loan agreement to see whether this is a requirement.
Can I delete the data my car has collected about me?
This depends on the manufacturer. Some allow you to request deletion through their privacy portal or by calling customer service. Others keep the data indefinitely and do not allow deletion. Check the manufacturer's privacy policy or contact them directly to find out what your options are.
Do all new cars have cellular connections?
Most new cars sold in the United States have some form of connectivity, but not all. Some manufacturers offer models without cellular modems, or allow you to buy a car without the feature. Older used cars may not have connectivity at all. If connectivity is a concern, ask the dealership or check the window sticker before you buy.
What happens to my data if I sell my car?
This varies by manufacturer. Some automatically delete your data when the car is sold; others transfer it to the new owner. Some keep it indefinitely. Before you sell, contact the manufacturer to ask what happens to your data and whether you can request deletion.