The number of Maryland auto insurance policies enrolled in a telematics program has been consistently growing, increasing by about 45% from 2021 to 2023. About 55% of the enrolled policies experienced an increase or decrease in premiums, according to results from a new survey by the state’s insurance commissioner.
Premiums fell for about 31.2% of telematic policies and rose for about 23.6% at renewal in 2023. About 45% of policies had no change in premium, the Maryland Insurance Administration (MIA) said in its report on the growing use of telematics in Maryland.
MIA’s market conduct data for the last three years indicates roughly half of the insurers in the auto market in the state have some form of telematics program and that the number of carriers offering telematics is increasing. In 2023, of the state’s 126 auto insurance carriers, 54 that wrote 43% of the market indicated that they were using/collecting telematics data in some way. That was up from 42 in 2022 and 53 in 2021. Despite a drop in the number in 2022, the insurance department concludes that the use of telematics in the auto insurance market is not going away.
“The findings from the survey indicate that more and more insurers are adopting telematics programs and that consumers need to be aware of what is collected and how the data is used prior to consenting to enroll in one of these programs,” the report says.
The report notes that privacy notices vary from insurer to insurer and there are currently no requirements regarding how the notices must be written. In general, these programs require the active involvement of policyholders to ensure that data is being collected accurately.
While telematics programs are intended to provide policyholders with some control and influence over the premium that they pay, MIA cautioned consumers that the data collected can result in increases in premium.
In December of 2024, MIA surveyed to 18 insurers representing 80.9% of the 2023 auto insurance market in Maryland. This survey included only the private passenger auto segment of the market and not commercial insurance. The data from two insurers that do not have a telematics program were not be included in the report.
Telematics programs collect data through devices installed in a vehicle, through mobile applications, or through other methods. The data is transmitted in real time back to insurers regarding the driving behaviors of policyholders. Insurers the use this data to alter the pricing of a policyholder’s policy