The increased interest in telematics and behavior-based insurance is likely an effect of a change in driving habits in 2020 due to COVID-19. SafePilot offers policy discounts of up to 20% for safe driving behaviors, with that discount expected to grow in 2021.
“While we expect to see an increase in driving in 2021 compared to 2020, we are keenly aware that our members want their policy costs to be reflective of their driving behaviors,” said Jim Syring, USAA P&C President. “SafePilot not only encourages safer driving behaviors, a cause we have long stood behind, but also offers up significant policy discounts to our members, helping facilitate their financial security.”
Nearly 50% of new policyholders in the four states where SafePilot is available opt-in to the program, with over 106,000 policies in place as of December 2020.
Over 300 million miles have been driven while utilizing SafePilot, and Dec. 18, 2020 marked the first day with over 100,000 trips, totaling 1.1 million miles driven in a single day.
Driving Behaviors in 2020
Data from SafePilot showed significant swings in driver behavior in 2020. Fewer cars on the road led to an increase in some dangerous driving behaviors, such as speeding events which increased 27% and phone handling events which increased 8% per trip over the course of the year.
There was also a decrease in other dangerous behaviors over the course of the year, including harsh braking events decreasing 5% per trip.
The increase in speeding and phone handling are likely due to fewer cars on the road during COVID-19 stay-at-home orders, alongside less need for harsh braking.
“Some very dangerous driving behaviors increased in 2020 due to more open roadways, but we believe programs like SafePilot will continue to encourage smarter decisioning behind the wheel,” said Randy Termeer, USAA SVP and GM Auto Insurance. “Our members’ safety is always our first and foremost priority.”
Source: PR Newswire
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