Pay-as-you-drive insurance programs are highly touted as one of the next big things in the industry. But the market has so-far resisted quick adoption of the coverage, which would involve having a device installed in a client’s car to monitor driving habits.
For now, Millennials remain the most interested in the telematics technology, according to the insuranceQuotes.com survey.
About 51 percent of respondents said they would not consider enrolling in a pay-as-you-drive program, up from 37 percent in 2013. Even more telling, 36 percent of said they had not heard of pay-as-you drive, down from 42 percent in 2013.
Why not sign up for the coverage and the discounts it provides? About 20 percent of respondents said they were worried about sharing private information, the survey found.
Broken down, a big part of the adoption issue comes down to age. Less than 25 percent of respondents age 65 or over said they were aware of pay-as-you-drive insurance. The awareness level increases, however, as the age of the respondents goes down. Just under 50 percent of respondents ages 18 to 29 said they were aware of the pay-as-you-drive insurance option.
Insurers in the space include Allstate and The Hartford, Progressive, Liberty Mutual and Travelers, insuranceQuotes.com noted.
The survey, handled by the Princeton Survey Research Associates International, polled 1,001 U.S. adults in December.