Half of drivers OK with being monitored
Usage-based coverage offers discounts for safe driving. But are you willing to have your habits monitored?
Half of consumers would let their car insurance company monitor their driving for a discount of 10%, a new survey finds, and more than a third would even switch carriers for the opportunity.
The survey of 2,072 insured drivers by analytics provider LexisNexis Risk Solutions finds increasing acceptance of technology to cut the cost of car insurance.
Usage-based coverage, sometimes called telematics, offers the prospect of discounts for people who drive fewer miles, at the safest times of the day, or demonstrate extreme caution behind the wheel. That information is typically gathered by devices that plug into the car’s onboard diagnostics system and transmit data back to the insurance company. By far the most widely recognized system is Progressive’s Snapshot, though most major national insurance companies have a program of their own.
In fact, the survey found, more consumers were less comfortable with online banking (51%), search engines that collect their history (57%), or using social networking sites that maintain personal information (61%) than they were with the idea of idea sharing their driving data (48%) or GPS location with a car insurance company (40%).
While the survey indicates widespread willingness to consider telematics, only about 1.4 million drivers have tried Progressive’s program so far. Here are the top 10 factors surveyed consumers said would increase their interest in usage-based insurance:
1. 80% -- Ability to opt out without penalty
2. 79% -- Receiving a discount
3. 77% -- Choosing the information provided to insurer
4. 75% -- Control over what you pay
5. 69% -- Information saved for a short time
6. 69% -- Ability to view driving score
7. 69% -- Additional safety features
8. 65% -- Information on child’s driving
9. 64% -- Collecting accident data
10. 57% -- Maintenance alerts
Many of those puzzle pieces are already in place.
Some carriers offer a discount to drivers simply for enrolling, and all allow drivers to opt out of the program. Depending on the insurer, the discount could be based on mileage alone. Others delve deeper, with how hard you accelerate or brake affecting your eventual discount. Most programs allow drivers to see their data online. And Progressive offers a free trial to customers of other insurance companies.
But once enrolled, you can’t choose which data your insurer sees or control how long the data is stored. Currently, insurers say that data from their devices can be used only to reduce rates, not raise them.
The technology can go much further: State Farm recently patented a way to adjust rates based on the specific roads you drive, not just the ZIP code where you live.
Industry analyst ABIresearch predicts 89 million worldwide will adopt usage-based insurance by 2017.
That growth could be enabled partly by the emerging use of smartphones to gather and send data, especially in Europe -- which links the data to a specific driver rather than just to the car. The LexisNexis survey found 73% of consumers viewed the idea of smartphone-based coverage as no more intimidating than programs involving a plug-in device.
More from CarInsurance.com:
- How much car insurance to buy
- Plug in, drive less, save more
- How do you know when it's time to shop around?
and why may i ask do they need all of this information. kind of like oboma care next they will want to monitor your sex. life give me a break some things in life are my business when the people who sell me insurance are perfect and can prove it to me then and only then do i want them monitoring my ever move if i accelerate to fast or break to much its my business i pay for the breaks and gas
There are good and valid reasons why even "innocent" people are advised to say nothing to the cops without having their lawyer present. Statements and facts (e.g., driving data) are easily misinterpreted, especially if the person perusing them has an agenda counter to your own best interests.
To preemptively lay bare your life in this manner voluntarily is, at best, foolhardy and will, at worst, work against you if your insurance carrier decides to deny your claim based say on a pattern of 'aggressive' braking. You don't think they can do that? When's the last time you read, really read, the fine print and all the clauses that are a part of your and ALL insurance policies.
Beyond that, any personal record you share with a third party (can you say metadata?), can be easily subpoenaed by any government agency or by opposing attorneys in a civil suit. Yeah, I may have to accept this blatant "1984" snooping in my life only when "Big Brother" is finally and fully in place (he's not here QUITE yet) but not until!
This short-sided mentality is so typical of us in the US. We try to save a frigging dollar and then wonder why our infrastructure is broken. Case in point: Wal Mart. Nothing wrong with Wal Mart but the cheap folks in the US practically HANDED China a foothold in the US, via Walmart. Hey, Wal Mart is only giving us what we asked for: CHEAP prices.
But, that said, don't come back now and complain that everything is made in China! We only get what we asked for.
And if you think allowing the insurance companies to monitor your private life for a savings of $100 is worth it, go ahead. Just don't come back complaining when they call you and tell you they're dropping you because you do too many jack rabbit starts or other such nonsense.
I want to drive the Insurance company nuts! After I insert the fob I will drive out to the next track day. Let's see what they do with the data then! Probably drop me as insured with a next day FedEx letter on the Monday after a race weekend.
And how many of us do this on a regular basis with our high performance sports cars? Lots of us. Plus in case you're thinking we are trying to get away with something, we don't. We already know that the insurance is void as soon as we enter the track. I just want to see the analysts faces when they try and figure out what is going on with all the acceleration and braking. The computer screen is goin bonkers.
Wow, really? Almost all of you need to sit down and take a big breath. Consumerism thrives off knowing what consumers want, right? We put ourselves out there every single day. I have Progressive insurance, and, gasp, yes I plugged in the device to let them monitor my driving. I saved some money. Yay! I'm totally ok with Progressive telling people I'm a good driver.
The rest of you screaming the sky is falling, do me a favor, will ya: Go off the grid.
Cancel your telephone, cellphone, internet, and cable tv services. Unlist your number from the phone book, but your old name is probably still out there so ya better-move to a different address, change your name, get plastic surgery (in another country of course), and cut all ties with anybody who just might know you-or the government will use the tiny fractal of meta data that's actually about you to take over the world. Mwahahaha!
Seriously...Snowden did us a favor, but you all are nuts.
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