Creates provisions relating to the procurement of driving data by automobile insurers
Impact
If enacted, HB1121 will prohibit insurers from purchasing or obtaining driving data from any third party regarding vehicles insured under their policies. This provision seeks to safeguard consumer privacy by ensuring that personal driving information is not readily accessible to insurance companies without the driver’s consent. The legislation reflects a growing emphasis on data protection in the realm of automotive technology, recognizing that telematics can reveal extensive information about individuals' driving habits and preferences.
Summary
House Bill 1121 aims to regulate the procurement of driving data by automobile insurers in Missouri. The bill introduces a new provision in chapter 379 of Missouri statutes, establishing parameters around what constitutes 'driving data,' which is defined as information collected by a vehicle’s telematic system. This includes various data points like GPS position, vehicle speed, diagnostic information, and driving behaviors such as sudden braking or fuel consumption. By defining these terms, the bill sets the groundwork for how insurers can interact with this data.
Contention
While supporters of HB1121 argue that it reinforces consumer privacy, there may be contention surrounding the implications for insurance pricing and risk assessments. Insurers often rely on telematics to tailor policies based on driving behaviors, which can lead to lower rates for safer drivers. Critics may express concerns that this bill could limit insurers’ ability to assess risk accurately, potentially leading to higher premiums for consumers overall. The debate will likely focus on finding a balance between protecting consumer data while allowing for innovation and fairness in insurance practices.