While the telematics capabilities that enable auto insurers to track mileage and driving behaviors continue to advance, Usage-Based Insurance (UBI) has potentially been slow to gain traction among consumers. In keeping with our mission of working with Members to design the best possible insurance products, AAIS recently went direct to consumers to understand the reservations that may be stalling adoption of UBI products and strategies to overcome these obstacles.In early 2022, AAIS sent a 10-question anonymous online survey to a cohort of adults in the US. The survey generated 565 responses from consumers who purchase or plan to purchase auto insurance. Our findings focus on the respondents that do not yet have UBI. Among the key findings:
Although a minority (17%) of respondents indicated they are likely to purchase UBI, these "Acceptors" present a growing opportunity to carriers.
- The middle ground of respondents, undecided on UBI (38%), pointed to three factors as being important in influencing their likelihood of purchasing UBI. These included the right to determine data access (74%), the right to privacy (49%), and rights to data rectification (33%).
- “Detractors” are those respondents indicating that they are unlikely to purchase UBI (45% of those surveyed). Their greatest concerns surround data, from ownership of telematic data (50%), to fair use of telematic data (50%), to transparency of telematic data use (49%).
- Respondents in older age groups, who view themselves as better-than-average drivers, were more likely to be among the “acceptors” of UBI to reduce insurance premiums.
The complete findings from the AAIS survey, including additional industry research and data on markets currently offering some form of UBI auto insurance for consumers, is available in our new AAIS Consumer Report: Auto Insurance 2022.
 While the data collection and sample size limit drawing significant conclusions, they do paint a clearer picture of the importance attached to certain factors motivating, or demotivating, uptake of UBI in the consumer auto sector.