PIFC has been advocating for the adoption of telematics in California for several years, recognizing its proven success in improving driving behavior and lowering insurance costs. Usage-based insurance programs that rely on telematics are widely available in the other 49 states and in many countries. These programs create meaningful incentives for safer driving by offering reduced premiums to individuals who demonstrate responsible habits behind the wheel, such as smooth braking, consistent speeds, and limited distracted driving. In doing so, they not only benefit consumers financially but also contribute to broader public safety outcomes.
The California Department of Insurance (CDI) has indicated that it currently lacks the capacity to undertake a comprehensive telematics rulemaking process before Commissioner Ricardo Lara leaves office. In this context, Assemblymember McKinnor has begun negotiations with privacy and road safety advocates in preparation to introduce a measure later this legislative session. The bill will outline a framework for what a future telematics regulation could include, helping to establish guardrails around issues like data use, consumer protection, and program transparency. While the implementation of a telematics program ultimately requires action from CDI, AB 1833 would provide clear legislative guidance on the factors that should be considered in any eventual regulatory approach.
Because PIFC is not the sponsor of the bill, we are taking a deliberate and collaborative approach, working closely with the author’s office and engaging privacy advocates to address concerns and refine the language before the bill advances to committee. This process is critical to ensuring that any telematics framework in California strikes the right balance between innovation, consumer benefit, and robust privacy protections.
