Denton | Gainesville ☰ ˟
(940) 566-2202 Denton
(940) 668-7675 Gainesville
Logo
  • Home
  • Get A Quote
    • AutomobileImage of right arrow
      • Auto Insurance Quote
      • Auto GAP Insurance Quote
      • Mexico Travel Insurance Quote
      • Auto Warranty Coverage Quote
      • Auto Quote Form (short)
    • Bonds
    • Business & CommercialImage of right arrow
      • Commercial Auto Insurance Quote
      • General Liability Quote Form
      • Business Owners (BOP) Quote Form
      • Builders Risk
      • Liquor Liability Quote Form
      • Workers Compensation Quote
    • Earthquake
    • Farm
    • Flood
    • HomeownersImage of right arrow
      • Homeowners Insurance Quote
      • Manufactured Home Quote
      • Homeowner Flood Quote Form
    • Limousine
    • Motorcycle
    • Recreational Vehicle
    • Renters
    • Trucking
    • Watercraft & Boat
    • Windstorm
  • Customer Service
    • AutomobileImage of right arrow
      • Request ID Card for Auto Policy
      • Request Declaration and Coverages Page for Auto Policy
      • Send Declaration and Coverages Information to Lien Holder
      • Add Vehicle to Existing Auto Policy
      • Remove Vehicle from Existing Auto Policy
      • Add Driver to Existing Auto Policy
      • Remove Driver from Existing Auto Policy
    • Business & CommercialImage of right arrow
      • Request ID Card for Commercial Auto Policy
      • Request Declaration and Coverages Page for Commercial Auto Policy
      • Add Vehicle to Existing Commercial Auto Policy
      • Remove Vehicle from Existing Commercial Auto Policy
      • Add Driver to Existing Commercial Auto Policy
      • Remove Driver from Existing Commercial Auto Policy
      • Request General Liability Certificate of Insurance
    • Earthquake
    • Flood
    • Homeowners
    • MotorcycleImage of right arrow
      • Request ID Card for Motorcycle Policy
      • Request Declaration and Coverages Page for Motorcycle Policy
      • Add Motorcycle to Existing Policy
      • Remove Motorcycle from Existing Policy
      • Add Driver to Existing Motorcycle Policy
      • Remove Driver from Existing Motorcycle Policy
    • Other
    • Recreational VehicleImage of right arrow
      • Request ID Card for Recreational Vehicle Policy
      • Request Declaration and Coverages Page for Recreational Vehicle Policy
      • Add Recreational Vehicle to Existing Policy
      • Remove Recreational Vehicle from Existing Policy
      • Add Driver to Existing Recreational Vehicle Policy
      • Remove Driver from Existing Recreational Vehicle Policy
    • Renters
    • Watercraft & BoatImage of right arrow
      • Request ID Card for Watercraft Policy
      • Request Declaration and Coverages Page for Watercraft Policy
      • Add Watercraft to Existing Policy
      • Remove Watercraft from Existing Policy
      • Change Primary Operator on Existing Watercraft Policy
    • Windstorm
  • Claims
    • Automobile
    • Business & Commercial
    • Earthquake
    • Flood
    • Homeowners
    • Motorcycle
    • Renters
    • Watercraft & Boat
    • Windstorm
  • Blog
  • Make a Payment
  • Resources
    • Secure File Area
    • Refer a Friend
    • Important Links
    • Calculators
    • Insurance Glossary
    • Frequently Asked Questions
    • News Center
  • About Us
    • About Insurance Services Agency
    • Our Locations
    • Employee Directory
    • Privacy Policy
  • Contact
    • Contact Us
    • Join Our Newsletter
Home > Blog > Usage-Based Auto Insurance
THURSDAY, SEPTEMBER 5, 2013

Usage-Based Auto Insurance

How U.S. Consumers Feel About Usage-Based Auto Insurance

U.S. drivers are open to purchasing usage-based auto insurance (UBI) policies, or “pay as you drive” insurance, and are even more interested when told their premiums would go down, according to a survey.

According Towers Watson, the results of its survey indicate that UBI is gaining momentum in the marketplace, with more consumers willing to let insurers monitor their driving habits with a telematics device in exchange for potential savings on their car insurance.

Most (79%) respondents to the UBI Consumer Survey indicated they either would buy a UBI policy or are willing to consider the concept, and if insurers would guarantee drivers’ premiums would not rise, that percentage increased to 89%.

The survey found that interest in UBI programs is highest among younger drivers (18- to 34-year-olds) with approximately two-thirds (66%) saying they would definitely or probably purchase a UBI policy. Roughly half (54%) of the participants who drive every day showed a strong interest in UBI.

“Many major auto insurers already offer UBI policies, though consumer adoption has been slower,” said Robin Harbage, global lead for Towers Watson’s UBI practice and its DriveAbility service offering, which provides insurers a way to go to market with a UBI product.

Progressive Corp., the fourth-largest U.S. auto insurer that has pioneered in UBI with its Snapshot product, recently said that getting customers to adopt the monitoring technology is a challenge.

Surveys of prospective Snapshot users have shown that “you get about 30 percent of people saying, ‘Yeah, why not?’; you get another 30 percent of people saying, ‘Maybe, I need to know more’; and you get about 40 percent of people saying, ‘No way in hell,’” Chief Executive Officer Glenn Renwick said recently.

Consumers are now becoming more familiar with UBI, and they like what they see. They are beginning to realize their data can actually be helpful while lowering their monthly premiums. Drivers’ views on UBI are rapidly evolving — they are embracing the technology and making it part of their driving experience,” said Harbage.

The survey also sought to gauge consumers’ interest in various additional services that can be enabled by the technology underlying UBI devices. Drivers indicated an interest in a number of these services, and 72% of those interested in UBI said they would be willing to pay for them. Drivers showed most interest in vehicle theft tracking (83%), automated emergency response (82%) and vehicle wellness reports (79%).

“Consumers’ interest in UBI-related value-added services presents a great opportunity for insurance companies,” said Harbage. “Insurers can begin thinking about de-commoditizing their products by incorporating these services into their UBI offering. They can really cater their products to the very specific needs of the market, and if done effectively, it will lead to growth and higher retention levels.”

Sixty percent of those interested in UBI programs said they would be willing to change their driving behavior. This was highest among younger drivers (76%), who represent the largest risk segment. When asked how they might change their driving behavior if a UBI device were to be installed in their car, respondents listed sticking to the speed limit (71%), keeping a safer distance from other vehicles (52%) and driving more considerately (49%) as the leading adjustments.

Consumers had the chance to voice their concerns about UBI programs. Their biggest worry has to do with money, as nearly half (49%) are worried their premiums would increase. Other concerns relate to privacy, such as insurers sharing consumer data (41%), fears that insurers will monitor and track driving destinations (42%), and apprehensions about insurers using data to invalidate claims (38%).

“These are understandable but not material enough to prevent further UBI adoption. In fact, these concerns actually create possibilities for insurers to design better UBI products,” said Harbage.

The Towers Watson UBI Consumer Survey was conducted between December 2012 and February 2013.

 

Posted 2:48 PM

Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010


View Mobile Version
Logo
Quick Links
Home Our Products Customer Service Payment Options Report a Claim
About Us Refer A Friend Our Carriers Blog Contact Us
Locations
1111 Teasley Lane
Denton, TX 76205

Phone: (940) 566-2202
Fax: (940) 565-0787
E: billiupsisa247@gmail.com

 

720 Belcher Street
Gainesville, TX 76240

Phone: (940) 668-7675
Fax: (940) 668-7191
E: billiupsisa247@gmail.com
Social Social Social Social
© Copyright. All rights reserved.
Powered by Insurance Website Builder