Consumer Federation of America Urges Support for S553, Which Would Regulate Auto Insurance Telematics Programs
The Consumer Federation of America (CFA) sent a letter urging the New York Senate Insurance Committee to support the bill S553, which would regulate auto insurance telematics programs. This bill, sponsored by Senator Kevin Thomas, will promote transparency, ensure that telematics programs reduce costs for good drivers, safeguard consumer privacy and consumer data, and reduce unfair discrimination in these programs.
Telematics, or usage-based insurance (UBI), are insurance programs that capture consumers’ driving data via devices, built-in technology, and mobile phones. The programs use that data to assess consumers’ driving behavior, driving patterns, and other qualities to calculate their insurance premiums. Policymakers have a responsibility to ensure that telematics programs are fair and affordable, and that consumers do not experience unfair discrimination. Consumer protection is a key component of these efforts; strong rules must be put in place to ensure pricing fairness and to protect consumer privacy when companies use telematics data and the associated algorithms.
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