Texas sues Allstate over collection of driver data

(Reuters) -Allstate has been sued by the state of Texas, which accused the insurer on Monday of illegally tracking drivers through their cellphones without consent, and using the info to justify charging more for automobile insurance.

Texas Attorney General Ken Paxton said Allstate created the “world’s largest driving behavior database,” with data on greater than 45 million Americans, by paying mobile app developers million of dollars to secretly incorporate its driver tracking software.

In response to a grievance filed in a Texas state court near Houston, Allstate profited through the use of the info to lift premiums or deny coverage, and by selling the info to other insurers.

Payments were made through Allstate’s data analytics unit Arity, the grievance said.

The lawsuit accuses Allstate of violating Texas laws governing data privacy, data brokers, and unfair and deceptive acts by insurers. It seeks damages including civil fines of as much as $10,000 per violation.

Allstate didn’t immediately reply to a request for comment.

(Reporting by Jonathan Stempel in Latest York; Editing by David Gregorio)

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