Telematics-based auto insurance has gained traction in Maryland, though its expansion has raised concerns over transparency and fairness.
Between 2021 and 2023, policies enrolled in such programs increased by 45.5%, according to the Maryland Insurance Administration.
While still not a majority of the market, Insurance Commissioner Marie Grant stated that telematics now represents a meaningful and growing segment of the state’s auto insurance landscape.
Grant credited the rise in adoption to both an increase in insurer offerings and growing public awareness. Many consumers, she noted, expect that telematics—which tracks driving behavior—will lead to fairer pricing.
The data shows mixed results: around 30% of participants saw lower premiums, 45% experienced no change, and nearly 24% faced rate increases during 2023 renewals.
Grant highlighted that this uneven distribution of outcomes underscores the need for stronger consumer understanding.
Transparency emerged as a central concern in the Administration’s review, especially regarding how insurers apply data and calculate premiums. She noted significant inconsistencies in how companies govern their telematics programs, which in turn contributes to consumer dissatisfaction.
Complaints often stem from a lack of clarity around how specific driving habits influence rates and the inability to challenge telematics-derived assessments.
Insurance Commissioner Marie Grant
Grant pointed out that insurers using proprietary models frequently withhold key details from both consumers and regulators.
Responses like “we can’t provide that” or limited data disclosures have become standard, frustrating policyholders and constraining the regulator’s ability to address grievances effectively.
To improve transparency, Grant called for a broader policy discussion. She believes the programs can be beneficial but only if consumers understand the rules and the consequences. That includes clarity on why premiums may rise based on telematics participation.
That’s why we’re looking to have a broader discussion about how we can increase some of that transparency. These can be great programs, but we also want to make sure that consumers truly understand the parameters.
Insurance Commissioner Marie Grant
Maryland legislators attempted to address these issues during the last session with Senate Bill 984. The bill aimed to mandate telematics disclosure, establish an appeals process for policyholders, and prohibit specific types of premium increases. However, it did not pass.
