Proposal would allow drivers to trade personal data for potentially lower insurance rates
The measure would also let drivers use telematics data to supplement DMV records, while opponents warn it could weaken Proposition 103 protections.
- California's Senate insurance committee passed Assembly Bill 311, legislation allowing insurers to use telematics to monitor driver behavior for rate-setting, making California the only state currently prohibiting such technology in insurance pricing.
- The proposed measure challenges Proposition 103, a 1988 law approved by 51% of voters mandating actual driving history for premiums; Consumer Watchdog founder Harvey Rosenfield argues it protects drivers from unverified algorithmic pricing.
- Assemblymember Tina McKinnor, the bill's author, testified telematics would "incentivize safer, good driving behavior," while the Insurance Department warned the bill contains "vague language" regarding third-party data collection and liability loopholes.
- Deputy Insurance Commissioner Josephine Figueroa warned the Senate privacy committee that telematics data collection often produces disparate impacts, citing Maryland Insurance Administration data showing 45% of enrolled drivers saw no premium change and 24% faced increases in 2023.
- While families of crash victims urge passage to improve safety, Consumer Watchdog executive director Carmen Balber questions the bill's fast-tracked process and lack of independent safety studies; the committee approved it four days after the Insurance Department's opposition letter.
14 Articles
14 Articles
Bill Would Let Insurers Monitor Customers’ Driving Data
A new California bill would allow insurance companies to use drivers’ real-time driving data when determining discounts on auto insurance premiums. The legislation, introduced by Democratic Assemblymember Tina McKinnor of Inglewood, would permit insurers to offer lower rates to motorists who demonstrate safe driving habits through telematics technology. The systems collect information such as speed, braking, acceleration, location, mileage, and …
California drivers may have a new alternative to reduce the cost of their motor insurance if a bill that proposes to amend the state's current rules is advanced.The initiative, known as AB 311, would allow those who agree to share data on their driving through monitoring systems to access potentially lower premiums.What would change AB 311 in California's car insuranceAs CalMatters reported, the AB 311 project would modify the framework that reg…
Palo Alto Online
Proposal would allow drivers to trade personal data for potentially lower insurance rates
This story was originally published by CalMatters. Sign up for their newsletters. A bill to allow insurance companies to monitor California drivers’ behavior in exchange for potential discounts on their premiums would change the state’s longstanding insurance law, drawing opposition from the Insurance Department as well as consumer and privacy advocates. Assembly Bill 311 would […]
Cal Matters – Proposal would allow drivers to trade personal data for potentially lower insurance rates – Consumer Watchdog
By Levi Sumagaysay, CALMATTERS https://calmatters.org/economy/2026/07/telematics-car-insurance-bill A bill to allow insurance companies to monitor California drivers’ behavior in exchange for potential discounts on their premiums would...
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