N.Y.: New bill would expand, regulate use of telematics in auto insurance

Legislation introduced in the New York Assembly on April 8, 2025, would formally authorize and regulate the use of telematics and usage-based insurance in New York state’s private passenger and commercial auto insurance markets.

This legislation could signal a move away from traditional underwriting factors in favor of usage-based rating factors.

The legislation

A.7710, sponsored by Assemblyman Steve Stern, D-10, would add a new section to the New York Insurance Law to provide a comprehensive framework for the use of telematics—data collected from vehicles and drivers through sensors, vehicle systems and telecommunications devices—for various insurance-related purposes. The bill also would update the Insurance Law to clarify that telematics-based loss prevention programs are permitted.

The bill defines telematics broadly to include vehicle speed, location, mileage, engine diagnostics, braking and cornering behavior, phone use while driving, road and weather conditions and more.

Insurers would be permitted to collect telematics data with the driver’s or named insured’s consent for determining insurance premiums, settling claims and detecting fraud, filing rates and enhancing customer service.

Consumer protections

The legislation makes clear that participation in telematics programs cannot be mandatory unless an insurer exclusively offers usage-based policies, and this must be disclosed clearly. Insurers must follow state notice rules for any premium increases due to telematics data. Data sharing is restricted and requires consent from the named insured unless otherwise ordered by a court.

The bill would allow insurers to offer telematics-based loss prevention programs that may incentivize safe driving as long as they’re available to both policyholders and the general public.

Looking ahead

This bill has been referred to the Assembly Insurance Committee. A same-as bill (S.5342) was introduced early this session in the state Senate, and currently it sits in the Senate Insurance Committee awaiting further action.

It is worth noting that similar legislation was introduced last session, but it failed to advance out of committee.

Get involved

If you want to get involved with PIANY’s legislative and advocacy work, there are many ways to engage with the association:

• participate in PIANY’s District Office Visit Program;
• become a member of Agents Advocacy Coalition; and
• watch your PIA Northeast publications and PIA Northeast’s social-media channels for important New York updates, and share them with your followers.