(UBI) has reached the mainstream. All the large providers have their own telematics programs, using everything from phone apps to software installed by automakers right into their vehicles.
But not everyone is signing up. Despite the discounts available to users, a recent survey shows that only 11% of drivers with smartphones have downloaded their insurer’s app. Out of that number, only 9% regularly use it.
said they used their insurance provider’s app, while adoption reached only 8% amongst respondents born in 1980 or earlier.
Household income also made a big impact on the data. 21% of those who made $125,000 to $249,000 a year showed interest, while only 11% of those who made $25,000 to just under $50,000 said they felt the same way.
Yet growth of the product is still likely, as about 35% of those surveyed said they would be somewhat or very interested in using an app to save on
to collect data about a driver’s habits like how much you drive, how hard you brake, and how often you check your phone while behind the wheel. Then, they set your rates or offer discounts based on the collected info.
Usage-based programs might help curb unfair insurance practices, but they aren’t necessarily the cheapest option for everyone. The less people drive, the more they tend to save through them. The accuracy of the mobile apps differs from company to company as well.
Downloading a UBI app is only one of the many ways to save on car insurance. Improving your driving habits and your credit score will bring insurance costs down, but these aren’t easy things to do, and it can take a long time before they make a difference.
will leave an average of $879 in your pocket every year.
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"B.A., English Literature, MedAndrew Koole is an insurance writer who specializes in writing automotive news articles. Andrew’s mission is to create informative and instructional content car owners can use to reduce costs, master repair skills, and learn more about the automotive industry. Andrew has published over 600 articles for Jerry on topics ranging from automaker history to car insurance deductibles. Before joining Jerry in 2021, Andrew split his time between freelance writing in the entertainment and travel industries and creative writing in poetry and fiction. His writing is featured on a variety of arts and travel websites, including his own Ponytail Press.