Of the 1,000 consumers surveyed, 37 percent said they would never consider pay-as-you-drive auto insurance and an additional 35 percent said they would require premium discounts of 25 percent or more to make the switch, according to “Pay-As-You-Drive Insurance: How Americans Could Save More,” a survey by InsuranceQuotes.com and Princeton Survey Research Associates International.

Two-thirds of the respondents who were enrolled in pay-as-you-drive car insurance programs said they are saving money, however, only 1 percent of all drivers surveyed had such plans. The rest appear to be in the dark.

"Most Americans consider themselves better drivers than others, but few are willing to test their abilities with a pay-as-you-drive insurance program," said Laura Adams, senior insurance analyst for InsuranceQuotes.com. "There seems to be a general lack of awareness and confusion about these programs."

Indeed, the survey found that 58 percent said they don't know what pay-as-you-drive car insurance is, or have mistaken notions about it.

For example, while 35 percent knew that drinking and driving is not tracked by UBI devices, 68 percent of 18- to 29-year-olds mistakenly believe that drinking and driving is tracked. Fifty-eight percent of consumers also either incorrectly said pay-as-you-drive programs don’t track when you drive, or weren’t sure. On the other hand, 37 percent knew that hard braking is tracked, and 42 percent knew that the time of day they drive is tracked.

Thirty-eight percent of male motorists say they are much better drivers than everyone else, compared to 27 percent of female drivers. Only 1 percent said they are below-average drivers.

While the majority of consumers may not be fully understand the plans, research firms and consultant groups are releasing ambitious estimates for the growth of usage-based insurance and telematics programs. For the latest projections, click here.

Princeton Survey Research Associates International interviewed, in English, a nationally representative sample of 1,000 adults living in the continental United States in late October; 500 of the interviews were conducted by landline and 500 by mobile phone, including 227 without a landline phone. Statistical results are weighted to correct for demographic discrepancies, the company said, and the margin of sampling error for the complete set of weighted data is plus or minus 3.7 percentage points.

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