75% of Drivers Open to Sharing GPS Data with Insurance Companies
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 Telematics Survey measured auto policyholder receptivity to allowing insurance companies to use data collected from telematics devices in their vehicles to help determine rates.
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 results showed policyholders more comfortable sharing GPS system driving data with insurance companies than personal information on social networking sites like Facebook.
Additionally the study 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 driving data.
* Only 29% indicated they were comfortable with social networking sites storing personal information such as messages and photos posted on websites.
* Policyholders’ main concern is privacy; however they are more receptive to sharing driving data with insurance carriers than they are to sharing personal information with banks, or allowing mobile phone carriers to store text messages.
* 80% of policyholders believe that tailgating should affect rates.
* 59% of policyholders believe that miles driven per year should be used to determine rates.
* More than half of policyholders feel that minor speeding infractions (5 mph over the speed limit) should not impact rates.