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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Cabaldon</ns0:AuthorText>
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<ns0:House>SENATE</ns0:House>
<ns0:Name>Cabaldon</ns0:Name>
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<ns0:Title> An act to add Chapter 8.5 (commencing with Section 1849.1) to Part 2 of Division 1 of the Insurance Code, and to add Section 16034 to the Vehicle Code, relating to autonomous vehicles. </ns0:Title>
<ns0:RelatingClause>autonomous vehicles</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Drive My Car Act.</ns0:Subject>
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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
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vote.
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<html:p>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.</html:p>
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<ns0:VoteRequired>TWO_THIRDS</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Chapter 8.5 (commencing with Section 1849.1) is added to Part 2 of Division 1 of the
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, to read:
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<ns0:LawHeading type="CHAPTER" id="id_5220CB6A-8FAA-460F-8985-4FE1046B2CC6">
<ns0:Num>8.5.</ns0:Num>
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<ns0:LawHeadingText>Drive My Car Act</ns0:LawHeadingText>
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<ns0:Num>1849.1.</ns0:Num>
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(a)
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This act shall be known, and may be cited, as the Drive My Car Act.
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<html:p>
(b)
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The Legislature finds and declares all of the following:
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<html:p>
(1)
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The automotive industry is undergoing a rapid technological transformation, with advanced autonomous driving systems, classified as SAE International driving automation Levels 3 to 5, inclusive increasingly available in consumer vehicles sold in California.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Advanced autonomous driving systems have demonstrated significant safety benefits in many driving conditions, with the potential to reduce collisions caused by human error, distraction, and impairment.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
While autonomous driving technology continues to evolve and improve, and may ultimately prove to be safer than human driving in most or all circumstances, the technology remains in various stages of development and deployment, with different manufacturers achieving varying levels of reliability and performance.
</html:p>
<html:p>
(4)
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Drivers have diverse preferences, comfort levels, and circumstances that inform their decisions about when and whether to engage autonomous driving features, including considerations of road conditions, weather, familiarity with the technology, and personal driving enjoyment.
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<html:p>
(5)
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Consumer choice and personal autonomy in vehicle operation are fundamental values that should be preserved even as automotive technology advances.
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<html:p>
(6)
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The
decision to use or not use advanced autonomous driving systems should remain with the driver, based on their individual assessment of safety, comfort, and preference, without financial coercion through insurance pricing mechanisms.
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<html:p>
(7)
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Insurance premiums should reflect sound risk assessments based on actual driving outcomes and established rating factors, rather than penalizing drivers for exercising their choice to maintain manual control of their vehicles.
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(8)
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This act acknowledges the safety benefits of autonomous driving technology while affirming that drivers should have the freedom to choose how they operate their vehicles without facing insurance penalties for that choice.
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<ns0:Num>1849.2.</ns0:Num>
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<html:p>For purposes of this chapter, the following terms have the following meanings:</html:p>
<html:p>
(a)
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“Advanced autonomous driving system” means a vehicle system that meets the definition of SAE Level 3 (Conditional Driving Automation), SAE Level 4 (High Driving Automation), or SAE Level 5 (Full Driving Automation), as defined by the Society of Automotive Engineers International standard J3016, as that standard may be amended from time to time.
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<html:p>
(b)
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“Autonomous engagement rate” means the percentage of driving time or distance during which an advanced autonomous driving system is actively controlling the vehicle.
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<html:p>
(c)
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“Base rate” means the premium rate
applicable to a policyholder based on traditional rating factors authorized under Section 1861.02, excluding any consideration of autonomous driving system usage or engagement.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
“SAE Level 3 (Conditional Driving Automation)” means an automated driving system that performs all aspects of the dynamic driving task with the expectation that the human driver will respond appropriately to a request to intervene.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
“SAE Level 4 (High Driving Automation)” means an automated driving system that performs all aspects of the dynamic driving task, even if a human driver does not respond appropriately to a request to intervene, within its operational design domain.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
“SAE Level 5 (Full Driving Automation)” means an automated driving system that performs all aspects of the dynamic driving task under all roadway and
environmental conditions that can be managed by a human driver.
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<ns0:LawSection id="id_A1AC3CB6-8089-4C1E-A3A3-742DDF15FC82">
<ns0:Num>1849.3.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
Notwithstanding any other provision of this code, an admitted insurer writing private passenger automobile insurance in this state shall not increase the premium, rate, or any other charge for a policy of automobile insurance based solely or partially on any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
An insured’s decision not to engage or activate an advanced autonomous driving system in a vehicle equipped with that technology.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An insured’s low autonomous engagement rate.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An insured’s preference for manual vehicle operation when advanced autonomous driving capability is available.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
This section is only applicable to SAE Levels 3 to 5, inclusive, and systems that assume primary control of vehicle operation from the human driver.
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<html:p>
(c)
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An insurer shall not do any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Require the use or engagement of advanced autonomous driving systems as a condition of obtaining or renewing coverage.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Nonrenew, cancel, or refuse to issue a policy, or reduce coverage limits, increase deductibles, or modify policy terms, based on nonuse or minimal use of advanced autonomous driving systems, except as otherwise permitted.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Apply surcharges, fees, or administrative costs to nonusers or minimal users that are not applied to users of these systems.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Characterize manual driving as a risk factor warranting premium increases when advanced autonomous driving capability is available but unused.
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<ns0:LawSection id="id_9B284DA6-15E4-49C1-AEE2-AC553C5E5AB2">
<ns0:Num>1849.4.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
A violation of this chapter shall constitute an unfair insurance practice under subdivision (h) of Section 790.03.
</html:p>
<html:p>
(b)
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The commissioner may impose administrative penalties not to exceed ten thousand dollars ($10,000) per violation after notice and a hearing.
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<html:p>
(c)
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A policyholder may bring a private right of action for violations of this chapter and shall be entitled to actual damages, injunctive relief, and reasonable attorney’s fees and costs.
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<html:p>
(d)
<html:span class="EnSpace"/>
The remedies provided in this section are cumulative and do not preclude other remedies available under this code or common law.
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<html:p>
(e)
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All rate filings under this chapter are subject to prior approval by the commissioner and shall not become effective until approved.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 16034 is added to the
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, to read:
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<ns0:Num>16034.</ns0:Num>
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<html:p>The regulation of insurance premiums, rates, and charges for vehicles equipped with advanced autonomous driving systems, as defined in the SAE International standard J3016, as it may be amended from time to time, for SAE Levels 3 to 5, inclusive, shall be governed by Chapter 8.5 (commencing with Section 1849.1) of Part 2 of Division 1 of the Insurance Code. A person shall not be required to engage or use advanced autonomous driving capability as a condition of maintaining financial responsibility under this division.</html:p>
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