According to a new survey of American consumers by Willis Towers Watson, many drivers are willing to share their driving data for a better deal on car insurance.
The insurer surveyed 1,005 U.S. drivers ranging in age from 18 to 65-plus in February 2017 to examine how the spread of in-car technologies and connected cars is influencing consumers’ buying behaviors and attitudes toward usage-based insurance (UBI).
In particular, 78% of millennials, 61% of Generation X, and 51% of baby boomers said they would “definitely/probably” be open to sharing their recent driving data, such as the past month’s data from navigational apps or an in-car system, for personalized insurance quotes.
Related: 'Upscale millennials' more likely to adopt usage-based insurance
|UBI policyholders are positive
The survey found that a large majority (81%) of the roughly 10% of drivers who have or have had a UBI policy to date are very positive about its benefits. A similarly high number (84%) would be interested in or open to having short trial to determine the discount they could get before buying a policy.
Although willingness to share driving data is a prerequisite, consumers also have to agree to the principle that their auto insurance cost is determined by how they drive, says Willis Towers Watson. According to the survey, resistance to that idea is very low, with only 7% disagreeing with the premise that UBI is a better way to calculate premiums than traditional methods. The driving-related activities most survey respondents consider deserving of discounts are careful driving, low mileage, reduced speed and avoiding distractions.
(Photo: Shutterstock)
|Concerns exist
However, respondents did voice decision-making considerations, such as the possibility premiums might increase (50%); concerns premiums could fluctuate (38%); and how insurers might share their data (38%).
See more insights from the Willis Towers Watson survey in the infographic below. Read more about the study here.
(Click image to enlarge.)
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