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 other driving behaviors. McKinnor says the proposal would encourage safer driving while giving responsible motorists an opportunity to save money on insurance. Under current California law, insurers must primarily base rates on a driver’s safety record, annual mileage, and years of driving experience. California is the only state that prohibits insurers from using telematics to help determine pricing. Supporters argue the existing law is outdated and should reflect advances in technology, while critics have raised concerns about privacy and the collection of drivers’ personal location and travel data.
