Maryland May Put the Brakes on How Auto Insurers Can Collect and Use Telematics Data | Insurify
State Sen.
To Washington, it's a matter of data privacy.
"While proponents argue that this technology encourages safe driving, the reality is far more complex," he said at a
He also hopes the bill ensures drivers are not subject to hidden biases.
"The increases resulting from telematics programs could disproportionately impact low-income individuals and rural residents, who may have longer commutes due to limited public transportation," he said at the hearing.
Proposed regulations draw state support and insurer criticism
Washington wants more checks and balances and said he thinks insurers are using telematics in a way that's not transparent.
"We actually see a lot of complaints on this issue," she said. "Folks who are enrolled in telematics programs often have pretty limited abilities to appeal or challenge data with their carrier."
"We do think this information is highly predictive," she said. "There's very little that's as predictive of future loss as somebody's driving habits, and so it is important information we think insurance companies should be able to take into account, again with full disclosure."
Harding noted that
In April, the MIA updated regulations to enforce its requirement for insurers to pay diminished value claims, which is the difference between a car's value before and after an accident. In July,
What's next: Other states consider telematics legislation
Multiple states have considered or enacted legislation related to telematics, according to LexisNexis' State Net Insights.
If
"No state has explicitly banned insurance companies from using this tool to alter rates, making
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