General Motors has agreed to pay $12.75 million to settle a California data privacy lawsuit that accused the automaker of selling driver location and behavioral data to insurance companies.

Under the proposed settlement filed Friday, GM agreed to stop selling customer information to data brokers for a period of five years. The settlement must still receive court approval before taking effect.

The lawsuit alleged that GM collected and sold detailed driving data from its vehicles, including location information and driving habits, to third-party data brokers without proper customer consent. This information was then reportedly made available to insurance companies, potentially affecting customers' insurance rates and coverage decisions.

The settlement represents one of the larger penalties faced by an automaker over data privacy practices as vehicles become increasingly connected and capable of collecting detailed information about driver behavior. Modern vehicles can track everything from location and speed to braking patterns and acceleration habits.

GM has not admitted wrongdoing as part of the settlement agreement. The company will also be required to implement additional privacy protections for California customers under the terms of the proposed resolution.