Maryland Insurance Administration releases report on the use of telematics in the state’s auto insurance market

​​​​​​BALTIMORE – The Maryland Insurance Administration has released a report on the growing use of telematics in Maryland, based on a survey of insurers with the largest auto insurance market share in the state.

Telematics refers to data which is collected through devices installed in a vehicle, through mobile applications, or through other methods. These devices transmit data in real time back to insurers regarding the driving behaviors of policyholders. This data is then used to alter the pricing of a policyholder’s policy. Telematics programs are intended to provide policyholders with some control and influence over the premium that they pay, but there is the risk that the data collected can result in increases in premium. Some consumers have also expressed concerns about how data is stored and whether it is shared with others.

In December 2024, the Maryland Insurance Administration issued a survey to 18 insurers. These insurers were chosen on the basis of their market share, previously reported data, and internal information available to the Insurance Administration. These 18 insurers represented about 90% of the auto insurance market in Maryland in 2023, based on total premium amounts. Sixteen of the surveyed insurers currently offer a telematics program.

The report can be accessed on the Maryland Insurance Administration website: https://bit.ly/telematicssurvey2025

Key Findings:

• The number of policies enrolled in a telematics program increased by about 45% from 2021 to 2023.
• The survey showed that about 55% of the policies enrolled in some type of telematics program saw an increase or decrease in premiums:
• About 31.2% of policies experienced a premium rate decrease at renewal in 2023.
• About 23.6% of policies experienced a premium rate increase at renewal in 2023.
• About 45% of policies experienced no change in premium.
• Privacy notices vary from insurer to insurer and there are currently no requirements regarding how the notice must be written. 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.
  
• In general, telematics programs require the active involvement of policyholders to ensure that data is being collected accurately.