Your Driver’s License Might Be Funding the State — By Selling Your Data

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Your Driver’s License Might Be Funding the State — By Selling Your Data

When Alaskans apply for a driver’s license, they’re not just handing over personal information for identification—they may also be unknowingly contributing to a multimillion-dollar data pipeline.

An investigation by Alaska’s News Source revealed that the state has been selling driver data to third parties, including major companies like LexisNexis and CARFAX.

Millions Made From Personal Data

Public records show that Alaska collected over $2.25 million in 2024 alone by selling DMV data to 16 different companies. 

Between 2019 and mid-2025, that number climbs to more than $16 million generated from residents’ personal information. 

The biggest buyer? LexisNexis—spending nearly $1 million in a single year for access to driver records. 

State officials say the money goes directly into Alaska’s general fund, effectively turning personal data into a steady source of government revenue. 

What Information Is Being Sold?

The data available through DMV records can include:

  • Names and addresses
  • Driving history
  • Vehicle ownership details

Under the federal Driver’s Privacy Protection Act (DPPA), this information can legally be shared with approved entities for “permissible uses” like insurance, background checks, and investigations. 

But critics argue most people have no idea this is happening—and little control over it.

“It Doesn’t Feel Right”

For many residents, the revelation has sparked outrage.

Some Alaskans interviewed said they felt blindsided, questioning why their personal data is being sold at all. Others were less concerned, viewing it as an unavoidable part of modern life.

Still, the lack of transparency—and the fact that most states offer no meaningful opt-out option—has raised broader concerns about privacy and consent.

A Nationwide Practice

Alaska isn’t alone.

Across the country, DMVs collectively brought in at least $282 million in 2024 by providing driver data to private companies, investigators, insurers, and data brokers. 

While officials often argue these fees simply cover administrative costs, the scale of revenue has led critics to call the system what it is: a government-run data marketplace.

The Bigger Question

The practice is legal—but that doesn’t mean it’s widely understood.

Most people assume the information they provide to get a driver’s license is protected. Instead, it may be packaged, priced, and sold—often without their knowledge.

And that leaves a growing question:

If your personal data is being sold… shouldn’t you at least know about it?

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