AB 311 Would Let California Insurers Price Auto Rates on Telematics Data

While most California drivers pay rates based on factors they cannot change in real time, Assembly Bill 311 would flip that dynamic by letting good driving behavior directly lower your premium.

Insurance Journal reports that AB 311, formally titled the Consumer Driving Data Protection Act of 2026, is currently advancing through the California Legislature. The bill would amend Proposition 103, the state's foundational insurance law, to allow insurers to use telematics data when setting rates for drivers who voluntarily agree to be tracked. The debate, as Insurance Journal notes, has drawn opposition from the California Department of Insurance and consumer advocates who cite concerns over privacy, transparency, and potential bias in pricing.

California telematics auto insurance is a concept that has been legal in many other states for years, but Proposition 103 has long restricted how insurers can price policies in the Golden State. AB 311 is the most direct attempt yet to open that door, with guardrails.

A California Law That Could Reshape How Your Driving Habits Set Your Rate

Right now, a safe California driver and a reckless one living on the same block can end up paying nearly identical rates. AB 311 wants to change that.

The bill, authored by Assemblymember Tina McKinnor, D-Inglewood, would allow insurers to offer discounts to drivers who voluntarily allow their driving behavior to be tracked via telematics technology. Think of it as a voluntary program where safer habits behind the wheel translate into real savings on your policy.

McKinnor argues the bill will make streets safer and incentivize safer driving behavior. That is the core promise: pair financial rewards with behavioral improvement, and everyone benefits.

But there is a real tension here. The same technology that could reward cautious drivers also collects granular data about where you go, when you drive, and how you brake. That tension is exactly what has pushed this bill into contested legislative territory.

For California drivers already navigating some of the most expensive California auto insurance markets in the country, the promise of a data-driven discount is understandably appealing. The question is what you give up to get it.

What AB 311 Actually Does, and How It Changes Proposition 103

Proposition 103, passed by California voters in 1988, has governed how insurers set auto insurance rates for nearly four decades. It restricts which factors carriers can use and requires regulatory approval for rate changes.

AB 311 would amend Proposition 103 directly. Under the bill, insurers who want to use telematics as a rating factor would be required to submit a rate application that includes specific materials related to their telematics program. This is not a free pass for carriers to collect data however they wish.

Here is what the bill specifically mandates and prohibits:

• Any insurer using telematics must file a compliant rate application with regulators before telematics data can influence a driver's rate.
• Telematics data collected under the program can only be used for rating private passenger auto insurance, and nothing else.
• Insurers cannot condition eligibility for a discount on participation in a telematics program unless that discount has been approved by the insurance commissioner.

That last point matters. It means carriers cannot quietly make telematics participation a hidden requirement for accessing lower rates. Any discount tied to the program must go through formal regulatory review first.

The Consent and Privacy Guardrails Built Into the Bill

Participation in any telematics program under AB 311 would be entirely voluntary. The bill explicitly creates consent and privacy requirements for insurers who choose to offer telematics-based pricing.

The data-use restriction is among the bill's sharpest teeth. Insurers would be prohibited from using telematics data for any purpose other than rating private passenger auto insurance. That means the driving data collected could not, under the bill's current language, be sold, shared with third parties for marketing, or used to evaluate non-auto products.

"The bill would also create consent and privacy requirements."

This distinction is important for drivers weighing participation. You would need to actively opt in, and the insurer's use of your data would be legally confined to one purpose: setting your auto rate.

Consumer advocates and the California Department of Insurance remain skeptical, however. Their concerns center on whether these guardrails are enforceable in practice, whether the data could introduce new forms of pricing bias, and whether drivers will truly understand what they are agreeing to when they sign up.

Who Supports the Bill, and Who Is Pushing Back

The positions on AB 311 are clearly drawn, and understanding each side helps you evaluate the bill on its merits.

"Opponents of the bill, which include the California Department of Insurance and consumer advocates, say they are worried about privacy, transparency and bias in insurance pricing."

The opposition from the California Department of Insurance is particularly notable. Insurance commissioners typically advocate for expanded coverage tools, so the department's resistance signals genuine regulatory concern rather than reflexive pushback. The bias argument is specific: telematics data could correlate with race, income, or neighborhood in ways that reinforce existing disparities in insurance pricing.

McKinnor's camp counters that safer driving is a behavioral choice available to all drivers, making telematics a more equitable rating tool than static demographic proxies.

How Telematics Pricing Works in Other States

California is actually late to this conversation. Drivers in states like Texas, Oregon, and Illinois have had access to telematics-based discounts from major carriers for years, with programs rewarding low mileage, smooth braking, and off-peak driving hours.

The Save Max Quote Index, drawn from 3.3 million+ real quote requests, consistently shows that drivers in telematics-friendly states who actively participate in usage-based insurance programs report meaningful variation in the quotes they receive compared to drivers who rely on traditional rating factors alone. The SMQI reflects that quote spread across states where telematics is well-established.

In states where usage-based insurance is already active, the general pattern holds: low-mileage and low-risk drivers tend to benefit most from telematics programs, while high-mileage commuters in urban areas may see smaller discounts or no benefit at all.

For context, Nevada auto insurance and Arizona auto insurance markets border California and have seen telematics adoption grow without the regulatory framework California currently maintains under Proposition 103. The absence of a comparable law in California has meant Golden State drivers have been largely cut off from these programs.

What this means for you

If AB 311 passes, watch for your insurer to begin promoting optional telematics programs with commissioner-approved discounts attached. Review the consent terms carefully before enrolling, pay attention to exactly what data is collected and how long it is retained, and compare any offered discount against quotes you can pull today through standard rating factors to understand whether opting in actually saves you money.

Where AB 311 Stands Now

As of July 2026, AB 311 has cleared multiple committees in the California Assembly and is now sitting in the Senate Committee on Privacy, Digital Technologies, and Consumer Protection.

That committee assignment is telling. The Senate did not route the bill to an insurance-specific committee first. Instead, it landed in a panel focused on data rights and consumer protection, signaling that lawmakers see the privacy dimensions of the bill as at least as important as its insurance-market implications.

The committee will determine whether the bill advances to a full Senate vote. If it passes the Senate, it would go to the governor for signature. If signed, California would join the majority of states where telematics is a recognized and regulated rating tool, but with a consent-and-commissioner-approval framework that is more structured than what most other states require.

The bill's fate in that Senate committee will be the clearest signal yet of whether California is ready to bring usage-based insurance fully into the mainstream.

FAQ

What is AB 311 and what would it do to my California auto insurance?

AB 311, the Consumer Driving Data Protection Act of 2026, would amend California's Proposition 103 to allow insurers to use telematics data when pricing auto insurance for drivers who voluntarily agree to be tracked. It would require regulatory approval for any telematics-based discount and restrict data use to auto rating only.

Is participation in a telematics program mandatory under AB 311?

No. The bill is structured around voluntary participation. Drivers would need to provide consent before any telematics data could be collected or used to set their rate. Insurers would also be prohibited from making telematics participation a condition of eligibility for discounts unless those discounts are approved by the insurance commissioner.

Why does the California Department of Insurance oppose AB 311?

The California Department of Insurance, along with consumer advocates, has raised concerns about privacy, transparency, and the potential for bias in pricing. The worry is that telematics data could correlate with factors like neighborhood or driving patterns tied to socioeconomic status in ways that create discriminatory pricing outcomes.

How is telematics different from how my rate is set today?

Currently, California insurers primarily use factors like your driving record, years of experience, and vehicle type to set rates. Telematics would add real-time behavioral data, such as how you brake and when you drive, as an additional rating input, potentially rewarding drivers who demonstrate safe habits in practice rather than just on paper.

Where is AB 311 in the legislative process right now?

As of July 2026, AB 311 is in the Senate Committee on Privacy, Digital Technologies, and Consumer Protection. It must clear that committee before advancing to a full Senate vote and, if passed, a governor's signature.

About Kyle Greenwood

Kyle Greenwood is a Writer and Researcher at Save Max Auto with a decade of consumer-content experience. He specializes in explainers, longer-form features, and Q&A guides on the topics auto drivers actually search for. Read more from Kyle Greenwood →

Edited by Brooke Grissom.

Methodology

This article is grounded in the source linked above. Save Max Auto data points referenced here are drawn from the Save Max Quote Index (SMQI), a proprietary instrument reflecting 3,364,317 real consumer quote requests submitted to savemaxauto.com. State and carrier rankings reflect the lifetime dataset; year-over-year shifts reflect a rolling 12-month window. The index is refreshed monthly. External authority figures referenced (NAIC, NHTSA, state regulators) reflect the most recent public data releases available at time of writing.

Sources

• Primary source: Insurance Journal, "California Bill to Let Insurers to Use Driver Telematics Mulled by Legislature"