Jan 13, 2015 06:30 PM EST
Pay-as-You-Drive Insurance Not That Popular in U.S.

It turns out most Americans would never consider signing up for a pay-as-you-drive insurance program, according to a new report by insuranceQuotes.com.

About 51 percent of Americans say they would never consider the program, which is an increase from the 37 of U.S. citizens who said they wouldn't last year. Millennials are the most likely to sign up for the program and are the least concerned about related privacy issues.

Pay-as-you-drive is a newer offer, in most states, that tracks the behavior of drivers. Data is monitored by a small sensor located in the back of a vehicle or by an existing on-board communications system, which feeds information to an insurance company, according to an insuranceQuotes.com press release.

"Insurers are not allowed to use the information to raise rates," said Laura Adams, senior analyst, insuranceQuotes.com in a company statement.

The survey was conducted by Princeton Survey Research Associates International (PSRAI).

Click here to see the full survey.

The study found that most Americans think that pay-as-you-drive insurance programs also monitor for drunk driving and driving in neighborhoods with high-crime rates, which they don't, for the record. The just measure mileage, how hard a driver hits their brakes and what time of day they drive.

Approximately 21 percent of respondents said their primary concern was sharing personal information. This was slightly behind the top answer of "I don't understand how it works," which received 26 percent of the overall vote.

"Many carriers give a premium discount in exchange for signing up for a pay-as-you-drive program and subsequently raise or lower the discount according to a driver's mileage and performance," Adams added.

Nearly three-quarters of Americans who have heard about pay-as-you-drive insurance learned about it from a TV commercial, according to the survey. Millennials were more than twice as likely to hear about the service from friends and family compared to older respondents.

See Now: OnePlus 6: How Different Will It Be From OnePlus 5?

 PREVIOUS POST
NEXT POST 

EDITOR'S PICK    

Hyundai to Invest $16.1 Billion for EV Business; Sets Annual Sales Goal of 1.87M Electric Cars by 2030

World's Most Expensive and Most Heavily-optioned Porsche 928 GTS is Coming Home to the U.S.

Major Boost as Tesla Giga Berlin Facility in Final Phase of Approval Process; Delivery Event Set This Month

Audi Looking for e-tron Electric Vehicles to Spur Car Brand's Growth in India in 2022

Toyota Offers Free EV Charging to Owners of 2023 bZ4X After Partnership Agreement with EVgo

2022 Suzuki Baleno Finally Unveiled in India: What are the Specs and Features of this City Car?