Inflation Drives 33% Surge in Auto Telematics Adoption in First Quarter of 2022

New TransUnion report finds consumers are seeking better value and service in addition to lower rates as they shop for insurance

CHICAGO, May 24, 2022 (GLOBE NEWSWIRE) -- With the costs of many goods and services rising dramatically in the last year, consumers are looking for more ways to lower expenses. TransUnion’s (NYSE: TRU) latest Personal Lines Insurance Shopping Report found the number of consumers who accepted a telematics offer from their auto insurance provider increased 33% since the end of 2021—a trend driven by consumers hoping to lower their premiums by demonstrating safe driving habits.

Telematics programs use connected devices, mobile phones, or auto manufacturer car apps to monitor and report detailed driving behavior. Similarly, in homes, connected devices monitor for warning of fires, water leaks, and other hazard risks.

The new data comes from a TransUnion survey of 2,791 consumers conducted between February and March 2022. It found that, compared to the last survey in November 2021, the number of customers offered a telematics policy to monitor their driving and help determine their rates rose from 32% to 40%—and the number of those who opted in rose from 49% to 65%.

“It’s clear that high inflation levels are impacting consumer wallets, and many people are now considering new technologies that may help them save money. In the insurance industry, more consumers are warming to the idea of using a telematics tool to enhance safe driving while also lowering costs,” said Michelle Jackson, senior director of TransUnion’s personal property and casualty insurance business. “This evolving sentiment could carry over to similar offerings in the property space.”

Along with general inflation, cumulative auto insurance prices are up on average 4%, with some states trending at nearly 20% for some drivers, according to the report. In response, consumers are shopping for lower premiums, better coverage and better service from their insurer, a trend noted across auto, property and rental insurance.

Percentage of consumers shopping and switching insurance providers over the past six months

Insurance Type	Shopping	Switching (% of those shopping)
Auto	39%	21%
Property	30%	61%
Rental	41%	64%

Auto and property insurance industries even out