Driving risk is in a large part driving by driving behavior which is a characteristic that is under control of the individual.

Monitoring that directly and pricing on it is far more fair than pricing on correlated hard to change attributes like being male or being young or being poor (credit score)

Also it’s a lot creepier for companies to run a file on people and get all that and more info sent over rather than just getting sent over how the person drives.

In a great many cases, insurance rates drop. Sometimes quite sharply. I've seen as much as a 50% drop.

Auto insurance is inevitably surveillance capitalism. Insurers always look at aspects of life your life and behavior to establish your risk profile. Age, employment, the kind of car you drive, your driving record, and more all have a measurable impact on your risk.

Telematics mostly makes things cheaper for good drivers. It also sometimes gives insurers a chance to try to nudge drivers towards safer behaviors, both through direct messaging and through higher prices for drivers with higher-risk behavior. Whether this is a good idea or not is a personal question, though for my own part I tend to think that underpriced insurance for operators of heavy machinery is not a human right.