Drive My Car Act.

Summary: SB 1315 – Drive My Car Act (California, 2025-2026)

Aimed at aligning auto insurance practices with autonomous driving technology, SB 1315 would limit how insurers price and condition coverage based on use of advanced autonomous driving systems (ADS), and would require automakers to notify regulators and insurers about software updates to ADS-equipped vehicles.

1) Purpose and Intent

• Recognizes rapid adoption of advanced autonomous driving systems (SAE Levels 2–5) and seeks to preserve driver choice and autonomy.
• Prohibits insurance pricing and underwriting practices that penalize drivers who do not engage ADS, or who use ADS less frequently.
• Ensures insurance rates are based on actual driving outcomes and established rating factors, not on nonuse of ADS.
• Maintains driver freedom from financial coercion tied to the use of autonomous features.

2) Key Provisions and Changes

Insurance Code (Chapter 8.5 – Drive My Car Act)

• Definitions:
  • Advanced autonomous driving system: SAE Levels 2–5, per SAE J3016.
  • Autonomous engagement rate: share of driving time/distance where ADS actively controls the vehicle.
  • Base rate: premium using traditional rating factors (excluding ADS usage).
• Prohibitions on pricing/underwriting (applicable to SAE Levels 3–5):
  • No premium or rate increase based solely or partly on a driver’s decision not to engage ADS or on a low ADS engagement rate.
  • Prohibits using nonuse/minimal use of ADS as a factor for higher premiums.
  • Prohibits requiring ADS engagement as a condition of obtaining or renewing coverage.
  • Prohibits surcharges or fees for nonusers that are not applied to users.
  • Prohibits treating manual driving as a higher risk due to the availability of ADS that is not used.
• Enforcement and remedies:
  • Violations constitute unfair insurance practices.
  • California Insurance Commissioner may impose administrative penalties up to $10,000 per violation after notice/hearing.
  • Policyholders may sue for actual damages, injunctive relief, and attorneys’ fees; remedies are cumulative with other remedies.
  • All rate filings under this chapter require prior approval by the commissioner.
• Manufacturer reporting requirement:
  • Automobile manufacturers must notify the Department of Insurance and insurers of any software updates to vehicle models with ADS.

Vehicle Code

• Sec. 16034 added: Regulation of insurance premiums for vehicles with ADS (SAE Levels 3–5) is governed by Chapter 8.5 of the Insurance Code.
• Financial responsibility standard: No requirement to engage ADS as a condition of maintaining financial responsibility.

3) Who/What is Affected

• Automobile insurers and policyholders for private passenger auto insurance in California.
• Automobile manufacturers that equip vehicles withADS and provide software updates.
• Department of Insurance (California) as the regulator and information recipient.
• Consumers who choose to use ADS, as well as those who opt to remain in manual driving mode.

4) Procedural and Timeline Aspects

• Legislative timeline:
  • Introduced February 20, 2026.
  • Passed committee stages with amendments and transfers to various committees.
  • Noted actions in April–May 2026, including amendments, second reading, and third reading for floor consideration.
• Effective/Implementation:
  • The text specifies that rate filings must be approved by the Insurance Commissioner before taking effect; penalties and private rights of action apply upon violation.
  • The act would take effect subject to its statutory timeline after passage and signature (calendar timing not stated in the excerpt).

5) Fiscal and Oversight Considerations

• No appropriation is requested by the bill.
• It relies on existing regulatory and enforcement mechanisms (commissioner penalties, private rights of action) to deter violations.

If you’d like, I can distill this into a one-page briefing for policymakers or convert it into a comparative table with current law versus SB 1315 changes.