A new report by Princeton Survey Research Associates International (PSRAI) found that 51% of Americans did not want their insurance company to use on-board monitoring of their driving behavior. If this is a surprise to you, it is very likely that you are a younger adult driver.
The main idea behind pay as you drive insurance policies is that if you drive conservatively and safely – and not very much – you will pay less than the tire-screeching maniac beside you with a can of suds in one hand a cell phone in the other. Interestingly, if you are that maniac, the programs always promise that regardless of the results of the data-tracking, you will never pay more than you would have were you not in the program. Laura Adams, senior analyst, insuranceQuotes.com explained the programs this way: “Insurers are not allowed to use the information to raise rates.” She added, “Many carriers give a premium discount in exchange for signing up for a pay-as-you-drive program and subsequently raise or lower the discount according to a driver’s mileage and performance.” It sounds win-win. But is it?
Of the 515% of espondents to the PSRAI study who did not want such a monitor in their vehicle, 21% had concerns about their personal information. About a quarter objected simply because they did not understand the programs. Although the survey did find that a majority of Americans do not want monitors in their vehicle, it seems that the real challenge for insurers is not to overcome customer’s privacy concerns, but rather to explain better how the programs actually work. Time may be on the insurance companies’ side. Of all customers surveyed, millenials objected the least to the idea of having one’s insurance company monitor their behavior.