Your Vehicle May Be at Risk For a Cyberattack
You’ve seen the reports: Hackers remotely take over a moving vehicle or exploit a key fob to enter and steal an electric car. Many high-profile auto hacks have proven that cybersecurity vulnerabilities exist within the industry.
Modern cars operate on computer networks. Even the most basic gas-powered models use dozens of semiconductor chips. Emerging cellular networks are increasing as rapid technological advances struggle to maintain strong cybersecurity protocols.
Cybercriminals are capitalizing on this connectivity, exploiting weak links.
Tech Can Increase Your Car’s Risk of a Cyberattack
Like a computer network, your car’s connected devices may have weak points that cybercriminals can exploit, such as:
Who’s at Fault: Drivers or Cybercriminals?
From an insurance perspective, the answer is unclear.
Insurance companies may eventually include coverage for onboard connectivity, as part of a stand-alone cyber liability policy or an add-on to your auto coverage. But right now, most auto policies remain silent about damage due to cyberattacks.
Staying silent on an issue is sometimes preferable to outwardly excluding something. If there is no mention, you can try to appeal the decision if the claim is denied.
Until policy language changes, most data breaches will fall under the cyber or data breach insurance category.
Cyber Liability or Data Breach Insurance
As for personal data breaches from attacks on cars, a personal cyber policy might cover you. Check the exclusions. These can vary significantly by company.
Ask your insurance broker to clarify loss scenarios involving cyberattacks like:
Auto Manufacturers Offering Insurance
Some auto manufacturers offer vehicle-specific insurance designed to handle the parts and peripherals. However, these policies may be like traditional auto policies that address bodily injury or property damage, but not data breaches. Don’t assume you’re covered for cyber insurance just because the manufacturer is offering the policy. Check the language.
Use Your Cybersecurity Knowledge
Think of modern vehicles as networks that interact with external devices as they move through the world. Handle vehicle cybersecurity like you’d handle your device or home network security. Stay informed and maintain your cybersecurity senses when using your vehicle:
Call Your Insurance Broker
Your broker can help you navigate emerging auto liability exposures. Your insurance policy language determines your coverage, and your broker can help you find the proper coverage for your situation.
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