Connected Car
Auto insurance price increases are higher, at 15.5%, than the other categories reported by the Consumer Price Index, which were an average of 4.9% in the past year. Power reports that customers' unhappiness with price increases is driving more carriers to offer usage-based insurance programs and telematics products, and more consumers to adopt them. Participation rates in UBI programs have more than doubled since 2016, from 8% to 17%. If we go back to 2016… that growth comes from the people who said they'd be interested if [UBI programs] were offered." Cambridge Mobile Telematics (CMT) research also indicates the increasing interest in UBI and telematics offerings, as the company's consumer telematics enrollment grew 142% from 2020 to 2023.