According to a UBI consumer survey, American drivers have grown comfortable using usage-based auto insurance (UBI) programs. UBI programs allow auto insurance companies to monitor drivers in exchange for discounts on their premiums. Towers Watson conducted the survey and found that drivers with a UBI policy nearly doubled in 17 months. It sat at 4.5 percent in February 2013 and increased to 8.5 percent in July 2014.
In the survey, there were 1,000 respondents surveyed, and 79 percent revealed that they would buy a UBI policy or consider it. Additionally, if car insurance companies gave a guarantee that insurance premiums would not rise, the percentage of people who agreed to it increased by 88 percent.
The acceptance of UBI policies shows that consumers are more concerned with safety and savings benefits over privacy concerns. According to a study conducted in 2014 by LexisNexis Insurance Telematics, the majority of commercial fleet managers have slightly less awareness of UBI, with a percentage of 25 percent compared to 38 percent for consumers. LexisNexis discovered that more consumers view UBI-based insurance as a legitimate safety feature for cars. Additionally, parents want to know that their teen drives safely, and interest in UBI technology for tracking teens increased by 12 percent from 2013.
The UBI policy option becomes a win-win for car insurance companies and the consumer. Drivers pay less for insurance while improving their driving, and insurance companies insure safer drivers that are less risky. Additionally, it improves road conditions for everyone.
Aside from basic UBI, mobile UBI increased. The study showed mobile UBI had 29 percent of the market in 2013, and it increased to 34 percent in 2014. Savings is the biggest reason people choose UBI-based car insurance. LexisNexis Risk Solutions provides essential information to help customers across industries. They uphold the highest standards of privacy and security, and they are a leader in offering professional information across numerous sectors, including auto insurance.