California drivers may soon face a new choice when buying auto insurance. Would you allow an insurance company to monitor how you drive for the chance to pay a lower premium?
Assembly Bill 311, known as the Consumer Driving Data Protection Act of 2026, would allow drivers to voluntarily use telematics data to establish their driving safety record for insurance rating purposes. Supporters say the proposal could reward people who drive safely every day. Opponents warn that drivers may be giving insurers access to sensitive information without knowing exactly how an algorithm will affect what they pay.
The bill is still moving through the California Legislature. After passing the Senate Insurance Committee, it was referred to the Senate Committee on Privacy, Digital Technologies, and Consumer Protection.
California Is the Last State That Does Not Allow Telematics for Auto Insurance Rating
California auto insurance rates are governed by Proposition 103, a voter approved law passed in 1988. Under the current system, a driver’s safety record is primarily based on information found in a Department of Motor Vehicles record, including traffic convictions and principally at fault accidents.
California is the only remaining state that does not allow actual driving behavior collected through telematics to be used as a driving safety record for insurance rating purposes. AB 311 would change that by giving consumers another option. Drivers could continue to be rated under the traditional system or voluntarily enroll in a telematics program.
Participation could not be required as a condition of obtaining or renewing coverage. Insurers would also be prohibited from penalizing or adversely underwriting drivers simply because they decline to participate.
What Driving Behavior Could Insurance Companies Monitor?
Telematics technology can collect information about how a vehicle is being operated. Under AB 311, the data used for rating could include behaviors such as:
- Speed
- Acceleration
- Abrupt or dangerous braking
- Whether a driver comes to a complete stop at stop signs and red lights
- Frequent lane changes that may indicate unsafe weaving
Although some news coverage has described the proposal as GPS tracking, the current bill text would prohibit insurers from collecting data unrelated to safe driving, including the time a person drives and the location of the vehicle. It would also prohibit audio recordings, recordings of vehicle occupants, biometric information, and other unrelated connected vehicle data. The data could then be analyzed through a computational, statistical, actuarial, or algorithmic scoring model to help determine a driver’s insurance rate.
Would Safe Driving Guarantee a Lower Insurance Rate?
No. The possibility of saving money is a major reason a driver might agree to participate, but a lower premium would not be guaranteed.
CBS Los Angeles reported data from the Maryland Insurance Administration showing that 31 percent of participating drivers received a lower rate, while 24 percent saw an increase and 45 percent experienced no change. In other words, most participants in that data did not end up paying less.
That raises an important question for California drivers. How much personal driving information would you be willing to provide for a chance, rather than a guarantee, of a lower premium?
AB 311 would require any discount tied to a telematics program to be approved by the California Insurance Commissioner. Insurers would also have to clearly distinguish telematics rates or advertised savings from equivalent traditional insurance products.
Could a Driver Review the Data Before It Affects the Rate?
Yes. The bill would give participating drivers an opportunity to review their data before it is used to determine a rate.
A driver could authorize the rating decision, request deletion of the data and begin another collection period, or leave the program. Consumers would also have the right to obtain a copy of their data, challenge incorrect information, and receive an explanation of how the data affected the rating decision.
Why Are Consumer Groups Concerned?
The California Department of Insurance and consumer advocates have opposed the proposal, citing privacy, transparency, and bias concerns. One issue is whether consumers could understand how a scoring model turns individual driving events into an insurance rate. Insurers seeking approval for a telematics program would have to provide the Insurance Commissioner with their scoring models, algorithms, variables, weighting factors, and validation studies. However, some proprietary materials and trade secrets could remain confidential. This means regulators may have more insight into the system than the drivers whose premiums are affected.
What Privacy Protections Would AB 311 Create?
The bill contains several limits on how telematics data could be collected and used. Insurers could not sell the data, use it for marketing, combine it with outside datasets, or purchase driving data from another source as part of the program. Participation would require affirmative consent, and the bill would impose limits on how long the information could be retained. Drivers would also be able to revoke consent and leave the program.
Could Telematics Data Be Used After a Car Accident?
AB 311 is written as an insurance rating measure, not as a new system for collecting evidence in accident claims. The current bill text would prohibit the use of telematics data for claims handling unless the driver expressly permits or provides the information.
Still, questions about driving data can become complicated after a serious crash. If you were injured and an insurance company is asking for information about how the accident happened, a Bojat Law Group car accident lawyer can review your claim and help protect your rights.
California Drivers Would Face a New Choice
AB 311 raises a simple question with no universal answer. Is the possibility of a lower insurance rate worth allowing an insurer to measure how you drive?
Some drivers may welcome the opportunity to prove that they drive safely. Others may decide that uncertain savings are not worth sharing more driving data. As the bill continues through the Legislature, the debate will likely focus on whether telematics can lower rates without sacrificing privacy, transparency, or fairness.
If you were injured in a California car accident, contact Bojat Law Group for a free consultation. Call (818) 877-4878 to speak with a car accident lawyer about your case.
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