According to a LexisNexis Risk Solutions Telematics Survey, more than 75 percent of auto insurance policyholders in the United States would welcome a telematics-based insurance program if sharing their driving data had the potential to reduce their premium.
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.
The Telematics Survey was designed to help the insurance industry understand policyholder awareness of and attitudes toward, telematics systems and insurance programs based on telematics data.
The study found that:
• 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.
Related article: US: Cross Country says telematics can bring cost savings to insurers.