SB 351: Enhancing Consumer Protection in Insurance Telematics

February 9, 2026 | Industry Update

The Maryland Senate Finance Committee is evaluating SB 351, a legislative proposal that seeks to enhance consumer protection in insurance telematics programs. The Consumer Federation of America supports these measures, emphasizing the importance of regulatory compliance to safeguard driver data and ensure fair practices across the state.

Understanding Telematics and Usage-Based Insurance

Telematics programs, part of usage-based insurance (UBI), gather driving data through mobile apps, plug-in devices, and vehicle systems. Insurance carriers use this data to assess driving behaviors and adjust premiums. This approach allows for more precise underwriting but raises concerns about data privacy and regulatory oversight.

Key Components of SB 351

SB 351 requires insurance companies to implement transparent processes for consumers to dispute or correct inaccurate data. The Maryland Insurance Administration will develop regulations outlining permissible data collection within state telematics programs. Moreover, the proposal empowers the Administration to enforce governance frameworks that insurance providers must follow.

This initiative highlights a growing trend in the insurance industry towards adopting telematics, prompting the need for effective risk management frameworks that uphold data privacy and consumer rights.