Telematics technology could make a difference in driver safety
Survey results released yesterday by Nationwide show that nearly half of consumers would consider participating in a telematics program to improve driving safety and help decrease their insurance premiums.
For those unfamiliar with the technology, telematics utilize GPS and on-board diagnostics to track driving habits of consumers. Insurance companies that offer this tech as an option will often offer consumers discounts on their premiums for practicing safe driving habits.
In short, it holds drivers accountable for how they drive by providing insurers an accurate recap of where and how they operate their vehicles.
The term ‘telematics’ was coined in a technology development report in 1978, according to Verisk. GPS technology, which was originally developed for military use, became widely available to consumers in the early 1990s, and by the early 2000s, telematics technology was being utilized in fleet management systems. Telematics are also widely used as a means to track packages as they make their way from a shipper to their destination because they provide real-time data on where delivery vehicles are located.
According to Nationwide’s report, 46% of respondents were open to pay-per-mile programs, and 45% were interested in discount programs that reward safe driving. However, their survey also revealed that 7 in 10 customers have no idea about telematics offerings within their policies.
Nationwide also found that 45% of consumers were open to having their insurers collect their driving data, as opposed to 36% who were comfortable with streaming services using their viewing data to personalize ads and 28% who believe it is acceptable for smart speakers to keep records of their requests and conversations with the speaker.
Their report also states that the top concerns for drivers surveyed included the rising cost of insurance and safety. Telematics, Nationwide says, is a means to address both issues. Consumers vary on their reasons for participating in these programs, however, with 78% telling Nationwide they do it for the discounts and 38% claiming they utilize the technology to become better drivers.
Nationwide also share that, after reviewing years of claims data, and with Christmas this year falling on a Saturday, the most risky day to drive this holiday season will be Thursday, December 23. They suggest that the use of telematics technology can not only help improve roadway safety during the holidays, but year-round, as well.
Gloss