California Bill to Let Insurers to Use Driver Telematics Mulled by Legislature
A California bill to enable carriers to offer auto insurance discounts for good driving behavior is making its way through state Legislature.
Assembly Bill 311 would amend the state’s bedrock insurance law, Proposition 103. The bill, the Consumer Driving Data Protection Act of 2026, would let insurers use telematics to set rates for drivers who choose to allow themselves to be tracked.
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AB 311 would require a rate application under which telematics would be used to establish an insured’s driving record to include specified materials related to the insurer’s telematics program. It would also prohibit using telematics data for a purpose other than rating private passenger auto insurance.
This bill would prohibit insurer that use telematics from taking certain actions, including conditioning eligibility for a discount for participation in a telematics program, unless the discount is approved by the commissioner. The bill would also create consent and privacy requirements.
The bill’s author, Assemblymember Tina McKinnor, D-Inglewood, says the bill will make streets safer and incentivize safer driving behavior.
Opponents of the bill, which include the California Department of Insurance and consumer advocates, say they are worried about privacy, transparency and bias in insurance pricing.
AB 311 has been moving through committees. It is in the Senate Committee on Privacy, Digital Technologies, and Consumer Protection.