Bill restricting how insurers can use driving data sparks debate

JEFFERSON CITY — A bill restricting how automobile insurance companies could collect and use drivers' telematics data was heard in the House Insurance Committee on Monday.

Insurers would be required to obtain written consent before accessing or purchasing this data. This data includes, but is not limited to, information regarding speed, braking patterns and seat belt usage.

Insurers would also be prohibited from increasing premiums and denying or canceling coverage if a driver refuses to provide their personal data.

House Bill 2324, sponsored by Rep. Bill Lucas, R-DeSoto, said the bill is intended to protect Missourians' personal freedoms and privacy as vehicle technology becomes more advanced.

"This bill is about individual personal freedom and the freedom from unreasonable intrusion into your life," Lucas said. "... Missourians should have control over their personal driving data and not unknowingly be subjected to data collection or sharing practices."

Lucas argued that if companies such as OnStar, a subsidiary of General Motors, can collect and potentially sell data to insurers, this information could then be used to unknowingly raise premiums based on drivers' habits. This practice could potentially violate the Fourth Amendment, Lucas said.

Rep. Steve Butz, D-St. Louis, questioned whether limiting access to this data could undermine insurance programs that reward safe drivers.

"I'm in full support of telematics," he said. "It is the way that punishes the bad drivers and rewards the good drivers. That is the absolute facts of the case."

He also argued that driving behaviors already aren't fully private.

"When you're speeding (over) 18 miles an hour, you're braking hard or when you're lane changing, it's publicly observed, and this is just a way to measure it," he said.

Hampton Williams, a representative from the Missouri Insurance Coalition, argued the bill would prevent insurers from offering safe driver programs that can significantly reduce premiums.

"Reporting nationally shows that these discount programs offer anywhere between 20% to 40% off on annual premiums for drivers, and so eliminating this program would impact ultimately what any individual's premiums are," he said. "These programs are voluntary (and) you're not required to join them."

In response, Rep. David Casteel, R-High Ridge, raised concerns that built-in vehicle systems such as OnStar's were previously scrutinized for collecting data regardless of whether drivers consented, subscribed to or engaged with them.

"I don't feel entitled or obliged to help them to profit from my data," he said. "So there should be a clear distinction from what they're using in terms of … what's inside of those trucks and cars."

The bill is not currently scheduled for a vote.