Drive My Car Act.

Plain English Breakdown

The official source material does not provide specific details on enforcement mechanisms and penalty determination processes, leaving these areas open to interpretation or further clarification.

Drive My Car Act

The Drive My Car Act requires car manufacturers to inform insurance companies about software updates for self-driving cars and stops insurers from raising rates or charging extra fees based on whether a driver uses these systems.

What This Bill Does

• Requires automobile manufacturers to notify the Department of Insurance and auto insurers when they make changes to self-driving car software.
• Prohibits auto insurers from increasing prices just because someone does not use an advanced autonomous driving system in their car.
• Forbids insurance companies from requiring drivers to activate or use these systems as a condition for getting or renewing coverage.
• Prevents insurers from charging extra fees to people who do not use self-driving features, while allowing them to charge users of such systems if it's fair and reasonable.
• Gives the Insurance Commissioner power to fine companies up to $10,000 per violation after a hearing.

Who It Names or Affects

• Automobile manufacturers
• Insurance companies
• Car owners who have or might get self-driving cars

Terms To Know

Advanced autonomous driving system

A technology that allows a car to drive itself without constant human control.

Admitted insurer

An insurance company approved by the state to sell certain types of insurance policies.

Limits and Unknowns

• The bill does not specify what happens if a car manufacturer fails to notify insurers about software updates.
• It is unclear how this law will be enforced or how penalties for violations will be determined.

Official Summary Text

SB 1315, as amended, Cabaldon.
Drive My Car Act.
Existing law creates the Department of Insurance, headed by the Insurance Commissioner. Existing law generally regulates the business of insurance in the state, including automobile insurance.
This bill would require an automobile manufacturer to notify the Department of Insurance and automobile insurers of any software updates to vehicle models equipped with an advanced autonomous driving system, as defined.
The Insurance Rate Reduction and Reform Act of 1988, an initiative measure enacted by Proposition 103, as approved by the voters at the November 8, 1988, statewide general election, prohibits specified insurance rates from being approved or remaining in effect that are excessive, inadequate, unfairly discriminatory, or otherwise in violation of the act. Under the act, rates and premiums for automobile insurance are determined based on specified factors, followed by other factors the Insurance Commissioner adopts by regulation. Existing law authorizes the provisions of Proposition 103 to be amended by a statute that furthers the purposes of the act and is enacted by the Legislature with a
2
3
vote.
This bill would prohibit an admitted insurer
from increasing the premium or rate for automobile insurance based solely or partially on specified factors, including an insured’s decision to not engage or activate advanced autonomous driving systems, as defined. The bill would also prohibit an insurer from requiring the use of these systems as a condition of obtaining or renewing coverage and from applying surcharges or fees to nonusers that do not apply to users of those systems. The bill would authorize the commissioner to impose administrative penalties, not to exceed $10,000 per violation after notice and a hearing, and would authorize a policyholder to bring a private right of action for a violation of these provisions. The bill would make other related changes.

Current Bill Text

Download Bill PDF