The state of Texas filed a lawsuit against Allstate Corp on Monday, alleging the insurer illegally tracked drivers through their cell phones without consent and utilized the data to increase insurance premiums or deny coverage. The suit also claims Allstate profited by selling the data to other insurers.
According to Texas Attorney General Ken Paxton, Allstate created the “world’s largest driving behavior database,” gathering information on more than 45 million Americans. The insurer reportedly paid millions to mobile app developers to embed tracking software into applications like Fuel Rewards, GasBuddy, Life360, and Allstate’s own Routely app. “This represents a blatant violation of Texas laws protecting consumer privacy and against deceptive practices,” Paxton said in a statement.
The complaint, filed in a state court near Houston, alleges that Allstate’s data analytics unit, Arity, began developing the tracking technology in 2015. Additionally, the state accuses Allstate of purchasing vehicle location data directly from automakers, including Toyota, Lexus, Mazda, and Stellantis brands like Jeep and Dodge, to further refine its ability to determine when policyholders are driving.
The lawsuit seeks restitution for affected consumers, civil fines of up to $10,000 per violation, and the destruction of any illegally obtained data. Allstate has yet to respond publicly to the allegations.
This legal action mirrors a similar suit Paxton filed against General Motors in August 2024, accusing the automaker of installing technology in over 14 million vehicles to collect driver data without consent. Paxton emphasized, “Consumers deserve to know when and how their data is being used, and we will continue to hold companies accountable for violations of trust and privacy.”