Texas Attorney General Ken Paxton filed a lawsuit against Allstate on Tuesday alleging the company covertly monitored customers' driving habits in a bid to raise rates. The suit, which was filed in Montgomery County,

An expert said the auto industry should pay attention to Texas' data privacy laws: "What Texas has done is funded it, staffed it and supported it."

According to the lawsuit, AllState and its subsidiary harvested trillions of miles of location data from over 45 million insured customers across the nation, resulting in the 'world's largest driving behavior database.

Paxton accuses Allstate of collecting driver location and movement data without consent to raise insurance rates in the state.

Allstate ALL.N has been sued by the state of Texas, which accused the insurer on Monday of illegally tracking drivers through their cell phones without their consent and using the data to justify charging more for car insurance.