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Journal of Traffic and Logistics Engineering
Article . 2020 . Peer-reviewed
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Journal of Traffic and Logistics Engineering
Article
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Acceptance Factors of Car Insurance Innovations: The Case of Usage-Based Insurance

Authors: Juan Quintero; Alexandr Railean; Zinaida Benenson;

Acceptance Factors of Car Insurance Innovations: The Case of Usage-Based Insurance

Abstract

Usage-Based Insurance (UBI) is an application of Intelligent Transportation Systems (ITS) in the context of car insurance. UBI refers to insurance models in which insurers collect driving data using a telematics device. Based on the collected information, insurers can offer individual discounts depending on driving behaviour and provide feedback about each trip. Although there are plenty of advertising materials about the benefits of UBI, its user acceptance and usability have not received much research attention so far. To cover this gap, we conducted two user studies: semi-structured interviews with UBI users and a qualitative analysis of 186 customer inquiries concerning a UBI program from a web forum of a German insurer. We found that UBI can benefit drivers, insurers and society. Moreover, the country driving conditions, the policy conditions, the users’ perceived driving style, the perception of UBI, and the premium reduction influence UBI acceptance. Regarding traffic safety, some of our participants were concerned that UBI may provoke dangerous driving behaviour under certain circumstances. Finally, we make recommendations for insurers derived from users’ views, such as to provide to drivers more control over the user interface and over the way driving feedback is given to them. Concerning the driving scores, the ways in which they are calculated should be more transparent.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Average
Average
Average
gold