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Bill

HB 81

Restrict Use of Vehicle Telematics.

2025-2026 Session Introduced by Eric Ager and 22 co-sponsors

Insurers may not use vehicle telematics data without written consent and clear notice; consumers can revoke consent anytime, with use stopped within 24 hours (penalties apply).

Withdrawn From Cal
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Bill Summary · HB 81

HB 81 — Restrict Use of Vehicle Telematics (Summary)

Status: Withdrawn from Calendar (per file)
Introduced: Feb. 10–11, 2025 (House) — bill text sets effective date Oct. 1, 2025 if enacted
Primary subject areas: Insurance, Privacy, Transportation, Consumer Protection, Monitoring/Surveillance

Purpose

The bill would limit insurers’ use of vehicle telematics data for underwriting and related purposes by requiring clear notice and written consent from applicants or policyholders before an insurance institution or agent may collect, receive, sell, share, or otherwise use telematics data. It also creates procedures for revocation of consent and establishes enforcement consequences.

Key provisions

  • Adds a new statutory section (proposed § 58‑39‑33) to Article 39 of Chapter 58 (Insurance law).
  • Notice and written consent: an insurer or agent may not collect, receive, sell, share, or otherwise use vehicle telematics data regarding an applicant or policyholder unless it:
    • Notifies the person how the telematics data will be used, and
    • Obtains the person’s consent in writing, and
    • Notifies the person that consent may be revoked at any time.
  • Revocation: any person who gave consent may revoke it at any time; insurers/agents must:
    • Provide reasonable means for a person to communicate revocation, and
    • Effectuate the revocation within 24 hours of receiving it.
  • Enforcement/penalty: violation is both (a) an unfair trade practice under Article 63 of Chapter 58 and (b) an unfair or deceptive trade practice under G.S. 75‑1.1.
  • Definitions: the bill defines “vehicle telematics” as any tracking device, application, or software installed in a motor vehicle or mobile device that transmits and stores telemetry data about an individual’s driving habits via wireless networks.
  • Applicability: the bill’s effective date language in the draft makes it applicable to contracts issued, renewed, or amended on or after Oct. 1, 2025.

Who would be affected

  • Primary: insurance institutions and agents that use telematics (usage‑based insurance, pay‑how‑you‑drive programs).
  • Secondary: telematics vendors, consumer protection/enforcement agencies, and vehicle owners/drivers (applicants and policyholders) in the state.
  • Potentially impacts underwriting, pricing, and product design where telematics data are relied upon.

Potential impacts and considerations

  • Administrative: insurers would need processes and systems to provide disclosures, obtain and document written consent, accept revocations, and cease use within 24 hours — increasing operational costs.
  • Market/pricing: could reduce insurer access to telematics data, potentially limiting usage‑based pricing programs and affecting rate differentiation tied to driving behavior.
  • Privacy/consumer protection: strengthens consumer control over vehicle tracking data and may increase consumer confidence in telematics programs.
  • Enforcement exposure: noncompliance carries statutory consumer‑protection consequences.

Procedural/timeline notes

  • Draft text makes the law effective Oct. 1, 2025 and applicable to contracts issued/renewed/amended on or after that date.
  • Legislative history shows the bill was introduced and advanced through early 2025 committee action but — per the file header — was ultimately withdrawn from the calendar. If reintroduced or reactivated, the effective/application dates in the current draft would govern implementation.

Compiled from official sources — confirm details with the bill’s official record.

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