Consumer Federation of America Calls on Maryland Legislature to Pass SB 351 and Establish Consumer Protections for Telematics
The Consumer Federation of America urged the Maryland Senate Finance Committee to pass SB 351, which would establish basic and badly needed consumer protections for drivers who participate in insurance company telematics programs. Currently, Maryland has few safeguards to ensure that these programs help consumers and that consumer data is not misused by insurers.
Telematics, also known as usage-based insurance (UBI), collects data about consumers’ driving behavior via mobile apps, plug-in devices, and from the cars themselves. Insurance companies then analyze that data and use it to assess consumer patterns and calculate insurance premiums.
SB 351 requires insurance companies to establish a clear process by which consumers can correct or appeal data collected by these programs that they believe is incorrect. It also requires the Maryland Insurance Administration to adopt regulations to limit the type and amount of data that can be collected by telematics programs in Maryland. Additionally, the Maryland Insurance Administration may require insurance companies to establish and implement governance plans.
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