What's happening
This bill allows insurance premium reductions for vehicles with safety monitoring devices and sets standards for their use and approval.
Why it matters
Encourages safer driving among young drivers. By targeting vehicles operated by "minor children" (drivers under 22) and allowing parents/guardians to monitor driving behaviors (speed, seat belt use, etc.), the bill aims to reduce risky driving and potentially lower accident rates for this high-risk group.
Makes advanced safety technology more accessible. The bill covers a wide range of monitoring devices, including removable gadgets and devices plugged into a car’s diagnostic port, not just permanent installations. This flexibility could make it easier and less expensive for families to adopt these technologies.
Establishes oversight and standards. The legislation requires the superintendent of insurance and the DMV commissioner to set up qualifications and rules for what devices count, ensuring that only reliable, effective monitoring systems qualify for insurance discounts.
Extends possible benefits to commercial policies. While focused on private vehicles, the bill also clarifies that insurers can grant premium reductions for commercial vehicles equipped with these devices, potentially spreading the safety and cost-saving incentives even further.
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Who cares
Headline styles
Lower Car Insurance For Monitors
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
No co-sponsors yet.
History
- Referred to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Discounts for Safe-Driving Devices
In Assembly Committee · Insurance · Sponsor David Weprin
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3483
2019-2020 Regular Sessions
IN SENATE
February 7, 2019
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to providing premium reductions for non-commercial motor vehicles equipped with automotive safety monitoring devices
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 2336 of the insurance law is amended by adding a new subsection (i) to read as follows:
(i) Any schedule or rating plan for non-commercial private passenger automobile insurance may also provide for an actuarially appropriate reduction in premium charges for bodily injury liability, property damage liability, personal injury protection, medical payments and collision coverage with respect to automobiles equipped with an automotive safety monitoring device.
(1) For the purposes of this subsection:
(A) (i) "Automotive safety monitoring device" shall mean a tracking device, global positioning system receiver or event data recorder that is installed on an automobile that allows a driver or a minor child's parent or guardian to monitor vehicle speed, acceleration or braking patterns, distance or direction traveled, the number of passengers in such automobile, whether passengers are wearing seat belts, the location of the automobile or other safety indicia when such automobile is being operated by an authorized minor operator.
(ii) Such device need not be permanently installed but must have the capability to accurately monitor the operation of the vehicle and notify parents or guardians of the location of such automobile or of unsafe vehicular movements that are occurring while such vehicle is under the control of a minor vehicle operator.
(iii) Such device may include a removable device or chip which interfaces with the automobile's onboard diagnostic system port and records
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06240-01-9
S. 3483 2
data from the manufacturer's event data recorder; provided, however, that such device has the capacity to accurately monitor the operation of the automobile.
(B) "Minor child" shall mean a person under the age of twenty-two years who holds a license to operate a motor vehicle.
(2) The superintendent shall, in consultation with the commissioner of motor vehicles, promulgate rules and regulations to establish qualifications and standards for the approval, utilization and installation of automotive safety monitoring devices.
(3) Nothing in this subsection shall be construed to prevent an automobile insurer from providing actuarially appropriate reductions in premium charges for bodily injury liability, property damage liability, personal injury protection, medical payments and collision coverage for commercial automobile insurance policies to any other insured whose automobile is equipped with automotive safety monitoring devices.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to all policies issued, renewed, modified, altered or amended on or after such date. Effective immediately the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to providing premium reductions for non-commercial motor vehicles equipped with automotive safety monitoring devices
Purpose
To provide for an actuarially appropriate reduction in automobile insur- ance rates for those vehicles that have installed an automotive safety monitoring device. The intent of using such devices is to provide parents and guardians of new drivers under the age of 22 with the abili- ty to monitor the driving habits of such young and inexperienced driv- ers.
Summary of provisions
Section 1. Adds a new subsection (i) to section 2336 of the insurance law to provide for an actuarially appropriate reduction in premiums for vehicles that are equipped with automotive safety monitoring devices. Such devices shall be capable of alerting the parent or guardian of a minor child who is operating a vehicle that the car is being driven in an unsafe manner or outside of time or location curfew restrictions. Such devices should help to monitor vehicular speed, location, distance and direction traveled, acceleration and braking patterns, the number of passengers in the vehicle and other safety indicia that indicates wheth- er the car is being driven in a safe or unsafe manner. The Superinten- dent of Financial Services, in consultation with the Department of Motor Vehicles, shall promulgate standards for the approval, utilization and installation of such safety devices.
Read the full memo (740 words)
Section 2. Effective date.
Justification
Drivers under the age of 21 are almost five times more likely to be involved in a fatal auto accident than drivers between the ages of 30 and 69. In 2002, 41 percent of all teen deaths were caused by motor vehicle accidents. That statistic far surpasses other causes of teen deaths, i.e. homicide (14%), suicide (11%), malignant tumors (5%), and heart disease (3%). In 2009, approximately 3,000 teen drivers between the age of 15 and 19 died as a result of a motor vehicle accident. Further, per mile driven, teen drivers were more than four times more likely than older drivers to crash.
There are several reasons for the high teen death rate in automobiles. Among the reasons are teen inexperience behind the wheel, higher levels of alcohol consumption, the tendency for such drivers to be more aggres- sive and reckless in traffic conditions, the non-use of seat belts, and because teens tend to drive smaller cars that offer less protection and which are more susceptible to rollovers. Automotive safety monitoring devices - such as CarChip, DriveSafe, Real-Time Tracking, RS-1000 Teen Driving System, SmartDriver, and TravelEyes2 - do exist. Further, these systems, and others, have demonstrated their effectiveness in enabling parents and guardians of minor drivers to monitor a youth's driving habits. Promoting the ability of parents to know the driving habits of their children should have a cooling effect on a teen's desire to drive recklessly or to travel to destinations far from home. This is because the above systems allow the parent to communicate directly with their children about unsafe driving practices near the time when such unsafe practices are occurring. In addition, teens may have a heightened desire to drive safer if they know that their parents or guardians are monitor- ing their driving habits and could take away driving privileges if curfews are not followed.
Instituting an actuarially appropriate rate reduction for those insured that install proven safety monitoring systems could reduce insurance rates for targeted populations by up to 25 percent. More importantly, it could save lives. The cost for installing these safety monitoring devices range from $160 up to $500, plus a monthly service fee. Encour- aging parents to install these devices is a sound public policy to reduce teen deaths & injuries and the injury or death of other drivers.
A few such driver safety monitoring programs have been operating in New York, however, there is no statutory program to authorize their use. By enacting this law, it is hoped that more auto insurers will make such programs available to New York parents and guardians.
Legislative history
2017-18: S362/A5435 - INSURANCE/insurance 2015-16: S1663/A3.081 - Insurance/Insurance 2013-14: S.2001/A.803 - Insurance Committee/Insurance Committee 2012:S.6628/A.9748 - Insurance Committee/Insurance Committee
Fiscal implications
To be determined.
Effective date
This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to all policies issued, renewed, modified, altered or amended on or after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.