Allstate Privacy Violations Lawsuit: Apps Spying on Drivers?

Attorneys working with ClassAction.org are investigating whether The Allstate Corporation illegally collected driving data about millions of Americans and used it to make decisions about their car insurance rates or coverage.

A lawsuit recently filed against Allstate by the Texas attorney general claims the insurer and a data analytics subsidiary have paid millions of dollars to car manufacturers and the developers of certain smartphone apps in exchange for vast amounts of user data.

The insurer can then use the information from its driver database to make underwriting decisions, such as whether to renew an auto insurance policy, raise rates, or deny coverage to specific individuals, the suit claims.

The lawsuit alleges that Allstate never got permission to collect drivers’ data and has broken Texas law by violating their privacy and using the “ill-gotten” data against them.

Allstate App Data Collection Lawsuit

The Allstate privacy lawsuit, filed on January 13, 2025, alleges that Allstate and subsidiary Arity have conspired to illegally amass “the world’s largest driving behavior database” in order to support Allstate’s insurance business and profit by selling the data to other insurers and third parties.

According to the case, Allstate has secretly collected data on at least 45 million Americans by paying developers to integrate Arity’s data collection software into their mobile apps, including the Life360, GasBuddy, Routely and Fuel Rewards apps. The lawsuit alleges that Allstate chose these specific apps because they use features that rely on location information and frequently request and obtain users’ permission to access their phone’s location data.

Per the case, Arity’s software development kit (SDK) operates in the background of an app and can amass vast amounts of information from users’ phones, including geolocation, accelerometer, magnetometer and gyroscopic data. From this information, plus personal details like names and contact information obtained from the apps, Allstate can assess users’ driving behavior and assign each person a driving score based on perceived risk, the suit alleges.

Further, Allstate allegedly purchased even more driving-related data from car manufacturers—including Toyota, Lexus, Mazda, Chrysler, Dodge, Fiat, Jeep, Maserati and Ram—in order to more precisely determine when users are actually driving as opposed to, for instance, riding as a passenger in a friend’s car or on a bus or taxi.

According to the lawsuit, Allstate uses the illicitly collected information against current and prospective policyholders, including by raising insurance rates, declining to renew a policy or denying coverage.

The lawsuit alleges that Allstate never informed drivers about its extensive data collection practices, obtained their consent to collect their sensitive data, or explained how the information would be used.

How Could a Class Action Lawsuit Help?

If filed and successful, a class action lawsuit could help drivers get back money for any violations of their privacy. It could also compensate policyholders or prospective policyholders who paid more in insurance premiums or had coverage denied due to the insurer’s alleged data collection practices.

A lawsuit could also force Allstate to stop any illegal collection or use of consumers’ sensitive information.

What You Can Do

Did you use the Life360, GasBuddy, Routely or Fuel Rewards app? Or, do you drive a Toyota, Lexus, Mazda, Chrysler, Dodge, Fiat, Jeep, Maserati or Ram?

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