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Allstate has been ordered to face a lawsuit alleging the insurance giant tracked drivers’ cellphones without their consent and tried to extract the information to boost profits.
A judge ruled Tuesday that drivers can move forward with a proposed lawsuit accusing Allstate of illegally collecting cellphone data, including location, speed, braking, acceleration and phone usage, Reuters reported.
The Illinois-based company is accused of using that information to raise premiums and deny coverage, as well as selling the information to other insurers.
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The Allstate sign on March 16, 2020, in Melville, New York. (Bruce Bennett/Getty Images)
Drivers may also want to prove that Allstate’s data analytics arm, Arity, violated federal law by misreporting their driving behavior, according to Reuters.
The lawsuit alleges that Arity’s tracking software was built into apps including GasBuddy, Fuel Rewards, Life360 and Routely.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| EVERYTHING | The company ALLSTATE CORP. | 211.62 | -2.56 |
-1.20% |
The judge allowed the drivers to pursue claims under 20 state laws, while dismissing three of the 38 claims in the lawsuit.
Meanwhile, Allstate argued that drivers did not say the company actually collected their data or raised their insurance rates.
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The insurer also said its privacy policies make it clear that data can be collected.
“Consumers who choose to share driving data through Arity-powered apps can access emergency assistance, track fuel efficiency and unlock personal insurance rates after a clear notification and transparent opt-in process,” Allstate told FOX Business via email.
The lawsuit includes 15 separate lawsuits filed against Allstate, Reuters reported.
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The insurer also said its privacy policies make it clear that data can be collected. (Tiffany Hagler-Geard/Bloomberg via Getty Images)
Insurance companies including Allstate, Progressive and Geico are using telematics technology to track people’s driving, saying it can reward safer drivers with lower premiums, according to Reuters.
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In January 2025, Texas Attorney General Ken Paxton filed a similar lawsuit accusing Allstate and Arity of illegally collecting, using and selling Texans’ mobile location and movement data through software embedded in mobile apps, including Life360.
Attorneys for the plaintiffs could not immediately be reached by FOX Business for comment.
Reuters contributed to this report.
