More Consumers Turning to Tracking Technology for Auto Insurance

  • PrintPinterestTumblrLinkedInFacebook
  • In recent years, the cost of auto insurance has become a bit of a sticky wicket for many consumers, who are now on the lookout for ways to reduce their expenses for this necessary coverage. One way many are seeking to do that is by installing devices in their car that track and report their driving habits to their insurers, with the idea being that it leads to safer operation overall, and consequently reduces rates. This trend is something of which insurance agents will have to be acutely aware, so that they can answer any questions a client might have about making the switch.

    This kind of device is a derivative of usage-based insurance, and can be used to determine whether a person is using all the safe driving habits that might be recommended to them, according to a report from the Motley Fool. More auto insurers are starting to offer these kinds of plans to consumers who are willing to give up a little bit of their privacy in exchange for potentially big savings. But studies show that right now, fewer than 2 in 5 drivers are actually aware these options exist, and of that number, roughly 1 in 5 have actually signed up. Consequently, only about 2 percent of drivers are using it.

    Drawing more curiosity
    However, as people become more accustomed to having their daily lives tracked by data companies, and the technology becomes a little more ubiquitous, the likelihood is that more people will move to adopt it, the report said. Some experts believe that as many as 20 percent or even 30 percent of all drivers could take it on within the next five years alone.

    The more insurance agents can do to help their clients understand the ins and outs of installing this sort of device, and what impact it might have on their auto insurance overall, the better off both sides are likely to be. While some companies do not yet offer these sorts of plug-ins for their policyholders, those that do are finding them extremely popular, and also using the data they spit out to better serve even the customers who don’t use it. In general, the more agents can do to help their clients understand their policies, the better off they’re going to be in terms of helping themselves to have the best possible customer satisfaction ratings and retention rates.