More consumers opt-out of telematics programs, TransUnion

Auto and property insurance shopping continued to rise in the first quarter of the year, according to the TransUnion ‘Insurance Personal Lines Trends and Perspective’ Q2 2023 report.

Despite an interest in lower premiums, more consumers are opting-out of telematics programs, according to the report. The number of consumers who accepted a telematics offer was 53% or 12 percentage points lower than a year ago, at 65%.

Michelle Jackson, senior director of personal property and casualty insurance in TransUnion’s insurance business, said in an emailed response: “Several things have changed since we saw the spike in telematics adoption last year. More employees have returned to the office, raising the risk that their driving behavior may cause their insurance rates to increase. In addition, some telematics programs have evolved to withhold any discounts until after a trial period.

Michelle Jackson

“While more than half of those offered a telematics program still opt-in, the increased risk and delayed gratification combined have made telematics less attractive to price-sensitive and risk-averse customers.”

The report suggests that digitalization has made online shopping for insurance simpler but that finding lower premiums via digital channels doesn’t produce the lowest prices.  

Consumers who got a quote from an agent went up 25% from previous surveys. The report notes that an inability to find lower rates online may be driving consumers to agents who can bundle policies, for example.