A recent study has shown that over half of the drivers in the country aren’t sold on having their habits monitored.
The results of a study conducted on the popularity of usage based insurance, also known as a pay as you drive plan, have recently been released, and they have shown that 51 percent of Americans will not even consider enrolling in this type of program.
The majority of consumers are resistant to being monitored in order to be able to obtain possible discounts.
The results of the study that was published by insuranceQuotes.com, have shown that more than half of drivers across the United States are unwilling to consider enrolling in usage based insurance plans that have been designed to use telematics to offer safer drivers who present a lower risk a potential discount on their premiums. These plans require a driver to have a very small tracking device installed in their vehicle, which will wirelessly report to the insurance company, revealing various habits such as speeding, hard braking, distance driven, times of day in which the vehicle is driven, and other similar details.
When compared with last year’s figures, it showed that consumers are less interested in usage based insurance.
Last year, a study conducted by the same firm showed that only 37 percent of drivers would not want to enroll in pay as you drive auto insurance. Clearly, this type of potential discount opportunity is beginning to fall out of favor among American drivers.
Several large auto insurance companies, including Allstate, State Farm, and Progressive, are offering drivers potential savings on their premiums if they sign up for this type of program that will allow safe drivers to be able to prove that their behaviors behind the wheel keep their risk of having to ever make a claim at a minimum. The plans typically allow good drivers to be able to obtain this type of discount, but at the same time, they are not used to penalize bad drivers.
At the moment, only a small percentage of insured drivers have a usage based insurance policy. As of July 2014, it was estimated by a Towers Watson survey that about 8 percent of motorists were insured through that type of program. Equally, that’s close to double the figure from February 2013.