AB 311 would let California auto insurers use GPS and AI to set rates
A bill in Sacramento would let insurers score driving risk with GPS data and algorithms. Privacy advocates warn about opaque pricing and data sales.
AB 311 would let California auto insurers use GPS and AI to set rates
Key Takeaways
- Assembly Bill 311 would allow insurers to use GPS-based telematics and AI to predict driver risk and set rates.
- California now bases rates on safety record, annual miles, and years of experience under state rules.
- Consumer Watchdog’s Carmen Balber warned of opaque scoring and possible data sales to third parties.
- Bakersfield residents interviewed raised privacy concerns about insurers tracking driving behavior.
The pitch came Thursday, July 9, with a simple promise of cheaper car insurance if drivers share more data. Consumer Watchdog’s Carmen Balber said the tradeoff is a black-box score that can move premiums without drivers knowing why. Bakersfield station KBAK first reported the bill.
Here’s why it matters for Central Valley readers. If AB 311 becomes law, carriers could ask Kern and Fresno County drivers to opt in to GPS tracking that feeds an algorithm predicting crash risk. Long Highway 99 commutes or late-night shifts could be reflected in a score that raises or lowers a monthly bill.
What AB 311 would change
AB 311 would let insurers collect driving behavior through GPS-based telematics and run it through an AI model to predict future risk. That prediction could become a rating factor when companies file prices with the state. California has long limited rating to three primary items, a driver’s safety record, how many miles they drive in a year and years of experience. This bill opens the door to model-driven scoring of how and when you drive.
Insurers already test usage-based discounts elsewhere. Here, they’d need drivers to opt in, then they could fold those risk predictions into rates, subject to state review. Still a big shift for California.
Privacy and data sale worries
Balber said drivers could be rated on factors they never see. "We’re essentially talking about a score that would rate you on factors you might not even be aware of and change your auto insurance premium," she said. She also warned that companies could sell driving data to third-party vendors, a market that didn’t exist when the state set its current rules.
Local voices echoed the concern. "Our privacy just keeps getting taken," said Anderson Ortiz, a Bakersfield resident, adding he doesn’t want the plan to move forward. Another resident put it bluntly: "It’s a privacy issue, I don’t want them having access to all my information."
Outside the station, Bakersfield sat at 97 degrees just before 5 p.m.
What it could mean here
For the Valley, the effect would depend on how models weigh time of day, speed variance, hard braking and road type. Bakersfield and Fresno drivers who log long freeway miles could see discounts if the data shows steady habits, or surcharges if late shifts and rural roads correlate with higher risk in the file. Farmers’ market runs on Sunday morning might look different to a model than a haul up Lerdo Highway after midnight.
Any new factor still goes to the Department of Insurance for approval, and officials will have to decide what transparency looks like for an algorithmic score. The agency didn’t answer a question about whether drivers would get a plain-English explanation of each penalty and discount. That’s the part readers ask first.
What to watch next
If AB 311 advances, look for required disclosures on what’s collected, how long it’s stored, and whether data can be sold. Also watch for opt-in terms that swap a short-term discount for always-on tracking. Kern County agents say customers already ask about usage-based policies, and they want to see the fine print before recommending one.
"I don’t want them having access to all my information," a Bakersfield resident said.
Central Valley AI is produced by the CVAI Newsdesk team and developed by Kaweah Tech, a regional firm that builds, deploys, and integrates AI solutions for businesses across California's Central Valley.