Both consumers and commercial fleets are increasingly embracing UBI programs and their tracking devices.
Consumers and managers of commercial fleets, alike, are experiencing a shift in their opinions with regards to usage based insurance, as the benefits of being able to save money and encourage safer driving practices appear to be winning out over concerns with regards to privacy.
These auto insurance programs have been slow to be accepted due to the telematics devices that track vehicles.
Drivers are starting to discover that there are some considerable financial benefits that are linked to the telematics that allow safe drivers to be able to save money on their premiums. These usage based insurance programs are also appreciated for the fact that they encourage such safer driving behaviors to make sure that vehicles are cheaper to insure, but also that problems are less likely to happen in the first place.
According to a recent study, the priorities in usage based insurance are different in personal and commercial customers.
Among personal vehicle drivers, the benefit that is appreciated the fact that there are considerable safety benefits associated with using this type of program. As UBI auto insurance rewards those with the safest driving behaviors, this provides considerable motivation for drivers to think about what they are doing and to choose to drive more slowly, follow less closely, and make other choices that will boost their odds of avoiding a collision.
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On the other hand, the 2014 LexisNexis Insurance Telematics Study indicated that in the case of commercial fleet managers, UBI programs are appealing are paying more attention to price reductions.
In terms of overall awareness, the study showed that private consumers are most aware of this type of pay as you drive coverage, at a rate of 38 percent, while commercial fleet managers have a 25 percent awareness.
A new Towers Watson survey has tracked with the results of the study and has determined that American drivers are not as concerned about privacy now as they once were. Their comfort levels with usage based insurance have been rising along with the increased popularity and availability of this type of coverage.