Question
Should our state encourage or restrict the use of telematics data (driving behavior collected via apps or devices) when setting auto insurance rates?
Background
Usage-based insurance can reward safe drivers with lower premiums, but critics worry about privacy, data security, and potential discrimination against drivers who decline tracking. Regulators are considering guidelines for how telematics data can be used.
Options
- Actively encourage telematics programs with clear privacy protections.
- Allow telematics but prohibit its use in setting base premiums.
- Restrict or ban telematics-based pricing to protect privacy.
- Leave policy unchanged and monitor industry practices.