New study shows that consumers are becoming more comfortable with usage-based insurance coverage
LexisNexis has released a new study concerning telematics and usage-based auto insurance coverage. The study notes that consumers in the U.S. are becoming considerably more comfortable with the idea of usage-based insurance, largely because of the savings they can take advantage of. Rate discounts are a main driver behind the adoption of telematics among drivers and businesses that manage vehicle fleets. Drivers do have some privacy concerns, however, in regards to the information that telematics systems collect.
Some insurers find success by promoting the money-saving potential of usage-based coverage
Usage-based insurance is becoming more popular at a rapid pace. This type of insurance coverage involves the use of technology that is designed to track a person’s driving habits and their location. Companies like Esurance have found success using such technology to provide a new type of auto insurance coverage to consumers. Many insurers do not offer usage-based coverage, but that is likely to change as the demand for this type of insurance continues to grow.
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Small businesses show a great deal of interest in usage-based insurance
The study shows that 73% of fleet managers for businesses are interested in the money-saving potential of telematics. This type of insurance coverage represents a way to reduce costs by a significant degree. Small businesses are particularly interested in usage-based auto insurance coverage because of its financial prospects. The study shows that many consumers are becoming comfortable with telematics. While there are concerns regarding privacy, the study suggests that consumers are more willing to share information with insurance companies than they are with social media platforms.
Auto insurance sector likely to remain strong despite savings being offered by usage-based coverage
Usage-based auto insurance is likely to become more common in the coming years. While this type of coverage will become more prevalent, insurers are likely to continue offering more conventional types of coverage that has been available for years. Insurers are not likely to suffer heavy losses from the adoption of usage-based insurance coverage, partly due to the partnerships they form with the companies developing telematics systems.