A recent report from Telematics Update indicates that approximately 1 million vehicles in the U.S. currently use insurance telematics, and the firm asserts that the number is expected to hit 60 million by 2019. But there are some obstacles to wider adoption of the technology. Of the 83 survey respondents who weighed in on these impediments, customer privacy concerns were cited most often, mentioned by 33 percent of the executives.

Of course, even given the privacy concerns, the more consumers can save on insurance, the more willing they are to allow telematics devices in their cars. Telematics Update cites the result of a 2011 Deloitte query of 1,080 consumers regarding how much of a discount they would require to allow a telematics device in their car. Forty-seven percent responded “over 20 percent,” 22 percent responded “16-20 percent,” 17 percent said “11-15 percent, and 11 percent said “6-10” percent. Only 2 percent said they would allow installation for savings of 1-5 percent.

The Telematics Update report indicates that consumers might be lured to telematics by more than price alone. “For customers who do not respond to discounting strategies, the additional Value Added Services insurers offer may entice customers to select insurance telematics products,” the report says.

In the Telematics Update survey, 225 of the insurance telematics-focused executives weighed in on some additional services that could play a role in the success of the technology. Navigation and destination management were the two most commonly-cited features, with 72 percent and 65 percent respectively indicating that the services are “important” or “critically important” to the future success of telematics. Internet ratio was the least-cited example, with just 17 percent saying it would be important or critically important and 55 percent saying it would not be important to future success.