Telematics. It works! It works!

Insurers were looking to do a little behavioral re-conditioning through technology and there’s new research to suggest they have

Insurance News

By James Middleton

Insurance-funded telematics devices have prompted more than half of US drivers to change their driving habits, according to research released this week.
 
A US-focused survey carried out by the Insurance Research Council (IRC) found that 56% of respondents have made changes in how they drive since installing a telematics device provided by their insurance company in their primary vehicle.
 
Of these, 18% said they have made significant changes, while the remainder have made smaller changes. A total of 38% said that they had made no changes whatsoever.
 
Perhaps unsurprisingly, drivers aged 65 and above were significantly less likely than other drivers to report making changes in how they drive.
 
A substantial majority (82%) of survey respondents reported that they had received information from their insurance company about their driving behavior after having a device installed, the vast majority finding the information useful in assessing their driving habits.
 
Elizabeth Sprinkel, senior vice president of the IRC, said of the findings: “While we can’t say with certainty that the changes drivers make are always for the better, or whether beneficial changes that are made become permanent, we can confidently say that the introduction and use of telematics technology is a move in the right direction.
 
“These findings suggest that having telematics devices installed in vehicles can play a beneficial role in promoting safe driving and reducing the frequency of auto accidents and their associated costs,” she said.

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