California bill to let insurers monitor drivers with telematics stalls in legislature
The Consumer Driving Data Protection Act, which would have let insurers use telematics to set rates, died in the California Legislature after opposition from privacy groups.
A bill introduced by Assemblymember Tina S. McKinnor aimed to allow California insurers to employ telematics devices to monitor motorists’ speed, braking and other habits, offering potential premium discounts for participants. The measure, called the Consumer Driving Data Protection Act, stalled in the Legislature amid strong resistance from consumer-privacy advocates who said it violated the 1988 Proposition 103 rate-regulation law and could expose driver data to third-party vendors.
Insurance industry representatives and traffic-safety groups countered that the proposal included robust privacy safeguards and could reward improved driving. The California Department of Insurance objected, citing insufficient oversight of telematics vendors and a costly regulatory burden, while a state budget analysis projected tens of millions in annual expenses. After the defeat, McKinnor indicated plans to work with the new insurance commissioner next year to pursue telematics through alternative legislation or regulatory action. The debate reflects broader pressures from rising auto-insurance costs driven by inflation and repair price spikes.
Why it matters
It highlights the clash between data-driven insurance savings and driver privacy protections in a major market.
In this story
