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75% of People Open to Sharing GPS System Driving Data with Insurance Companies To Lower Their Premiums

Over 75% of auto insurance policyholders in the U.S. would welcome a telematics-based insurance program, if sharing their driving data had the potential to reduce their insurance premiums, according to the 2010 LexisNexis Risk Solutions Telematics Survey.  The LexisNexis telematics survey measured consumer comfort levels around sharing personal driving information compared to other types of personal information from sources including Internet banking, mobile phones and social networking sites.  The survey showed policyholders’ main concern is privacy; however they are more receptive to sharing GPS system driving data with insurance carriers than they are to sharing personal information with banks, or allowing mobile phone carriers to store text messages.

The survey also identified telematics-based insurance programs that are of most interest to consumers. The number one item on the list are empowerment programs that give drivers control over their insurance rates and the opportunity to understand and modify their own driving behavior.  People were not as fond of programs that focused solely on discounts.

The Telematics Survey found that:

  • Over 57% of policyholders are comfortable sharing information about events that led to traffic accidents with insurance companies. 57% of policyholders also believe that auto insurance rates should be determined by actual GPS vehicle tracking driving data.
  • Only 29% indicated they were comfortable with social networking sites storing personal information such as messages and photos posted on websites.
  • 80% of policyholders believe that tailgating should impact rates.
  • 59% of policyholders believe that miles driven per year should be used to determine rates.
  • Over 50%  feel that minor speeding infractions (5 mph over the speed limit) should not affect rates.

Telematics in automobiles provide a variety of navigational and emergency services to motorists, especially GPS systems. Some insurance companies are beginning to use data collected from telematics enabled GPS systems to correlate driving behavior with insurance rates.

About LexisNexis

LexisNexis® (www.lexisnexis.com) is a leading global provider of content-enabled workflow solutions designed specifically for professionals in the legal, risk management, corporate, government, law enforcement, accounting, and academic markets. LexisNexis originally pioneered online information with its Lexis® and Nexis® services. A member of Reed Elsevier [NYSE: ENL; NYSE: RUK] (www.reedelsevier.com), LexisNexis serves customers in more than 100 countries with 15,000 employees worldwide.

http://insurancenewsnet.com/article.aspx?id=236292&type=newswires

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Categories: GPS Tracking System News