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More Drivers Choosing Telematics-Driven Policies To Save Money

 Thursday, May 26, 2022

 Repairer Driven News

The percentage of consumers opting in to telematics-driven auto insurance has risen by a third over the past four months, as drivers look for ways to avoid rate increases and the effects of inflation, according to a TransUnion survey released today.

The survey of 2,791 consumers conducted between February and March found that 40% had been offered a telematics policy, up from 32% from the most recent survey in November, and that the percentage of those who had opted in had risen from 49% to 65%.

TransUnion attributed the increase in opt-ins to consumers seeking lower premiums in response to rising insurance rates, which have gone up 4.3% on average, as well as higher prices in general.

Telematics, which monitors driving behavior in real time, promises consumers lower premiums in return for demonstrated safe driving.

The use of telematics by carriers has not been without controversy; for instance, an investigation by Consumer Reports found that telematics programs often have ‘confusing and opaque’ rules, and gather more data than is necessary.