How Telematics Devices have Changed the Behavior of Drivers

February 9, 2016

In a recent survey conducted by the Insurance Research Council, more than 55 percent of participating drivers reported making changes in the way they drove after having a telematics device installed. More than 35 percent reported making small changes in the way they drove, and almost 20 percent said that they had made considerable changes in their driving habits. Nearly 40 percent of respondents reported making no changes to their driving behavior after having a telematics device installed.

According to the survey's results, drivers who were over the age of 65 were much less likely than drivers of other age groups to report making changes in their driving practices. More than 80 percent of respondents who used telematics devices reported having their insurance company send them informative reports about their driving practices based on data gathered from a telematics device.

Of those who received informative reports, more than 80 percent reported reviewing the information, and nearly 90 percent of those who viewed the information found it helpful. The survey analysts said that these findings pointed to the benefits of having a telematics device installed in a vehicle. Their data showed a strong connection between safer driving habits and improvement of driving habits after having a device installed. This led to a lower frequency of accidents and fewer expenses. Overall, they believe that telematics devices are a step in the right direction whether they are temporary or become a permanent and more popular option offered by insurance companies.

There were several issues that experts said could affect the success of telematics devices and how often they are used. One of the issues was the willingness of drivers to participate in telematics device programs. Not all drivers were optimistic about using these devices, and some expressed additional concerns. One of the top concerns expressed by drivers was how the data collected from the telematics devices would be used. Experts hope to quiet the worries of consumers who are concerned about how the information is used and collected. With better education about telematics devices and statistics about their benefits, experts plan to encourage the use of them.

Auto insurance rates can be reduced with safe driving practices, and telematics devices give insurers a surefire way to see the driving habits of their policyholders rather than relying on information searches. To learn more about these devices, how information is collected or used and how they affect insurance rates, discuss concerns with an agent.

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