Survey Shows More than 75 Percent of Policyholders Would Welcome Telematics-Based Insurance Program
Policyholders more comfortable sharing driving data with insurance companies than personal information on social networking sites, according to
Telematics systems in automobiles provide a variety of navigational and emergency services to motorists, e.g. GPS systems. Some insurance companies are beginning to use data collected from telematics systems to correlate driving behavior with insurance rates; however, storage of telematics data remains limited. Worldwide, 84 percent of all cars shipped by 2016 will incorporate telematics systems, up 19 percent from 2008 according to iSuppli Corporation.
- 57 percent of policyholders believe auto insurance rates should be determined by actual driving data
- Policyholders’ main concern is privacy; however they are more receptive to sharing driving data with insurance carriers than they are to sharing personal information with banks, or allowing mobile phone carriers to store text messages
- 80 percent of policyholders believe that tailgating should affect rates
- 59 percent of policyholders believe that miles driven per year should be used to determine rates
- More than half of policyholders feel that minor speeding infractions (5 mph over the speed limit) should not impact rates.
“The survey findings show tremendous receptivity to allowing insurance companies to base rates on driving behavior,” said
The survey also identified telematics-based insurance programs that are of most interest to consumers. Topping the list were empowerment programs that give drivers control over their insurance rates and the opportunity to understand and modify their own driving behavior. Programs that focused solely on discounts were not as popular.
The web-based survey polled 3,472 U.S. residents. Of this number, 3,148 were a representative sample of insured drivers and 324 were drivers with a 16 to 25 year-old dependent on their policy. More information on the telematics survey is available by contacting [email protected].
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