Cybersecurity and Auto Insurance: Protecting Your Data in 2025

The surge in connected car technology, telematics, and usage-based insurance (UBI) in 2025 has made cybersecurity a top priority for auto insurers and policyholders. As vehicles and insurance platforms collect and transmit more personal and driving data, the risks of cyberattacks and data breaches have grown significantly.

•  Insurers now handle vast amounts of personal information, driving records, vehicle data, and granular telematics details. This makes them prime targets for cybercriminals seeking to exploit or ransom sensitive data.

•  2024 saw a sharp increase in large-scale ransomware attacks and data breaches across the automotive and mobility ecosystem, with over 100 ransomware incidents and 200 data breaches reported. These attacks are evolving to target not just IT systems, but also vehicles, smart mobility devices, and even EV charging infrastructure.

•  Insurance company platforms, mobile apps, and connected vehicles are all vulnerable to hacking, malware, and unauthorized access. Third-party vendors and partners also introduce additional security risks.

•  Compliance with evolving data privacy laws (such as the California Consumer Privacy Act and new federal proposals) requires insurers to implement strict data handling, security, and transparency measures.

•  Insurers are deploying advanced encryption protocols to protect data both in transit and at rest, ensuring that sensitive information cannot be easily intercepted or stolen.

• Threat Detection and Prevention: Companies are investing in AI-driven security operations centers (vSOCs), advanced threat detection, and real-time monitoring to quickly identify and respond to cyber threats.

• Multi-Factor Authentication (MFA): MFA is becoming standard for both customer portals and internal systems, adding an extra layer of security beyond passwords.

•  Insurers conduct frequent security assessments, vulnerability scans, and third-party risk reviews to identify and address weaknesses.

•  Human error remains a major vulnerability, so ongoing cybersecurity education for staff is essential.

•  Ensuring the security of telematics and connected vehicle data requires close cooperation between insurers, car manufacturers, and cybersecurity experts12.

•  Insurers must clearly communicate what data is collected, how it is used, and how it is protected. Policyholders should review privacy policies and ask questions about data handling.

•  Drivers should be aware of when and how they are consenting to data collection, especially with telematics or UBI programs.

•  Stay alert for phishing attempts, suspicious communications, or unusual activity on your insurance accounts.

• Choose Insurers with Strong Cybersecurity: When selecting an auto insurer, consider their reputation for cybersecurity and data protection.

Cybersecurity is now inseparable from auto insurance in 2025. As connected vehicles and digital insurance platforms become standard, both insurers and drivers must prioritize data protection. Insurers are responding with advanced security measures, but consumers should remain informed and proactive to safeguard their personal information in an increasingly digital insurance landscape