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A terrific article in the Wall Street Journal about technology, GM, and Auto Insurance. If you can get access to read the article, do so. There are some terrific charts, graphs, and data on here.
Car Insurers Struggle to Track Driving Behavior. GM May Have a Better Way to Do It.
Many car insurers have struggled for years to get policyholders to adopt telematics, a way to collect information about mileage and driving habits directly from the vehicle. The deal from General Motors Co. GM -0.35% to market car insurance based on data from onboard computers advances insurers’ efforts to size up risk.
Through cellphone apps and dashboard dongles, insurers have been hauling in a lot of data and offering discounts to the safest drivers, but many policyholders think the hassles outweigh the savings.
Industrywide fewer than about a tenth of policyholders are going the so-called usage-based insurance route, though the percentages are higher at insurers that have worked hard at it, according to consultants.
Analysts say the breakthrough in the GM partnership, which is with a unit of American Family Insurance, is that the hassles largely go away for policyholders. Once policyholders consent, insurers can access their data without the use of dongles or cellphone apps. The partnership follows an arrangement Ford Motor Co. F -0.34% and Lincoln Motor Co. struck with Nationwide Mutual Insurance Co. that was detailed in February and involves “connected car” data.
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Car Insurers Struggle to Track Driving Behavior. GM May Have a Better Way to Do It.
Many car insurers have struggled for years to get policyholders to adopt telematics, a way to collect information about mileage and driving habits directly from the vehicle. The deal from General Motors Co. GM -0.35% to market car insurance based on data from onboard computers advances insurers’ efforts to size up risk.
Through cellphone apps and dashboard dongles, insurers have been hauling in a lot of data and offering discounts to the safest drivers, but many policyholders think the hassles outweigh the savings.
Industrywide fewer than about a tenth of policyholders are going the so-called usage-based insurance route, though the percentages are higher at insurers that have worked hard at it, according to consultants.
Analysts say the breakthrough in the GM partnership, which is with a unit of American Family Insurance, is that the hassles largely go away for policyholders. Once policyholders consent, insurers can access their data without the use of dongles or cellphone apps. The partnership follows an arrangement Ford Motor Co. F -0.34% and Lincoln Motor Co. struck with Nationwide Mutual Insurance Co. that was detailed in February and involves “connected car” data.
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