What you need to know about driver data being shared with insurance companies

Your car could be recording how you drive, including your speed or any hard braking, and then transmitting that data to an information clearing house.

The New York Times reported that the data clearing house, LexisNexis, is working with insurance companies and their collaboration could drive your insurance rates higher.

"In the broad sense, we are all connected. The devices are connected," said K. Venkatesh Prasad, chief innovation officer with the Center for Automotive Research. "It would not be surprising to see that others would have plans."

The data collection was uncovered by drivers using General Motors' OnStar service, which is traditionally used to make an emergency call.

The owner of a Chevy Bolt told the Times he uncovered a 258-page report on his personal driving habits after he asked about a more than 20% increase in his insurance rate.

His insurance company told him to check his LexisNexis file.

Turns out, GM's OnStar service has a "smart driver" feature, which tracks driver habits as a way to improve safety.

GM confirmed to the Times that it shares "select insights" with LexisNexis and another data broker, but says the program is "optional to customers" and that drivers can un-enroll at any time.

"This is the beginning of an era where we will continue to be connected in every possible way. Cars might seem like the last bastion of this cocoon-like environment but it's one more thing that's getting connected," Prasad said.

Nationwide, auto insurance rates are up 26% this year, rising six times faster than overall inflation. The increase is blamed on several factors, including the rising cost of car repairs. But now, you can add another factor -- the possibility of insurance companies tracking how you drive.