According to research of over 1,146 consumers conducted by uSwitch.com, 26 percent of respondents said that they would not consider telematics insurance because of privacy concerns.
Of these, 62 percent felt that black box insurance was too ‘Big Brother’, and 37 percent said that they didn’t want to be monitored while driving. While just under half of those surveyed (45 percent) would consider installing a black box, over half (58 percent) incorrectly believed that telematics data is shared between insurers, and over a third (35 percent) thought telematics data could be used when applying for insurance.
On average, consumers would consider a telematics policy if net savings were at least £98 a year, with the 18-34 year olds requiring £173, and over 65 year olds wanting £72 of savings to be tempted by a black box.
Rod Jones, insurance expert at uSwitch.com said “Concerns around personal data are a major barrier to telematics adoption – in particular, how the data will be used and by whom.”
“It’s vital that the Government and the insurance industry addresses these concerns if the technology is going to take off.”