Cars Blog

Finance Blogs » Cars » Use-based car insurance growing

Use-based car insurance growing

By Tara Baukus Mello · Bankrate.com
Saturday, September 7, 2013
Posted: 6 am ET

The interest in use-based car insurance -- where consumers pay insurance rates based on their driving habits -- is growing, with 36 percent of consumers saying they would change carriers for a 10 percent discount on their car insurance rates, according to the 2013 Telematic Survey by Lynx Research Consulting for LexisNexis.

Usage-based auto insurance uses a telematics program to determine the time, frequency and manner in which the car is driven, collecting the information and providing it to the insurance company to determine if a driver is eligible for discounts on insurance premiums. One-third of respondents said the idea was appealing and are likely to allow a personal smartphone to be used to collect and transmit the necessary data.

The study found that 61 percent of drivers are more likely to accept telematics if insurers offer a three-month trial period, while 72 percent are more likely to accept a program if the car insurance provider offers an automatic 10 percent discount during the first six months.

How about you? Would you accept telematics?

Tara Baukus Mello writes the cars blog as well as the weekly Driving for Dollars column, providing both practical financial advice for consumers as well as insight into the latest developments in the automotive world. Follow her on Facebook here or on Twitter @SheDrives.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
19 Comments
Stacey
September 11, 2013 at 10:47 pm

NOPE!

MG
September 11, 2013 at 10:26 pm

I agree with the Communism idea myself!!!!

bob onitt
September 11, 2013 at 10:11 pm

i was born at night,just not last night.insurers are like gamblers,who bet that nothing bad will happen ,but when it does.1st thing they do is try to welch on the bet,this almost sounds like some form of self-incrimination,giving them more info to use to get out of paying based on some criteria they come up with after the fact.

bob onitt
September 11, 2013 at 10:10 pm

i was born at night,just not last night.insurers are like gamblers,who bet that noting bad will happen ,but when it does.1st thing they do is try to welch on the bet,this almost sounds like some form of self-incrimination,giving them more info to use to get out of paying based on some criteria they come up with after the fact.

rich herstowski
September 11, 2013 at 5:35 pm

insurance co take your money and when they don't make money raise your rates/not bad. How about earring a profit on your own/ its called good management

Ahmed
September 11, 2013 at 3:28 pm

Sounds like another method for insurance companies to drop people.

Bob McKnob
September 11, 2013 at 2:58 pm

Never..well maybe if it was 90% off. How about if I don't file a claim,which I never have in my 28 years of driving, I get a full refund? That sounds reasonable..you get the interest off my money for a year, then I get it back. Or, we pay once until we do file a claim...then we start over. Also reasonable.

Harry E. Doyle
September 11, 2013 at 1:30 pm

Do the insurance companies like Progressive think I just fell of the Turnip Truck.

Add a comment

(Comments may take 5-10 minutes to appear)