Drivers seem to have become more comfortable in the last year with the idea of giving up their information to help insurers price coverage more accurately.
In May 2019, the mobility data and analysis company Arity surveyed 875 licensed drivers over the age of 18 to find out how comfortable it would be for them to have insurance premiums adjusted based on typical telematics variables. Between 30 and 40 percent said they would either be very or extremely comfortable sharing this information.
In May this year, they conducted the survey again with more than 1
"This time," says Arity, "about 50 percent of drivers were comfortable getting their insurance policies priced based on the number of miles they drive, where they drive and what time of day they drive, as well as distracted driving and speeding. "
This is a year-on-year increase of more than 12%. What happened?
The answer starts with a "C" and ends with a "19."
Money calls …
Telematic information was part of the reason why insurers were able to return money quickly to their customers during the COVID-19 pandemic, and that fact seems to have attracted positive attention to usage-based insurance (UBI). Telematics combines GPS with built-in diagnostics to register and map where a car is, its condition and how fast it travels. This technology is an integral part of UBI, where insurers can adjust premiums based on driving behavior.
During the first wave of the pandemic, Arity data showed significant changes in how and when people drove when they began self-quarantine in March 2020. Driving across the United States dropped significantly, and this data helped trigger the trend of insurance companies offering refunds to their policyholder.
"These repayments were widely covered by the media, including Forbes so consumers became aware of the potential savings, even if their own insurer did not offer a discount," reports Arity.
"Private passenger car insurance companies returned this year about $ 14 billion in premiums to the country's drivers when miles driven decreased dramatically. during the first months of the pandemic, says James Lynch, Triple-I's chief actuary. "This resulted in a reduction of the cost of car insurance for the typical driver in 2020 by five percent compared to 2019."