A survey of 500 consumers conducted by the Progressive Group of Insurance Companies reveals that the majority of participants believe usage based insurance (UBI) is a fairer way to price insurance, versus the traditional insurance rating variables such as age, geographic location and driving history.
- Eighty-four percent believe bad drivers should pay more for their auto insurance.
- Nearly 80 percent of consumers agree that usage-based insurance is a fairer way to price insurance.
- Ninety percent of consumers ages 18-34 are willing to try usage-based insurance.
- More than half don’t realize they’re paying higher rates due to others’ bad driving and 85 percent would be upset to learn they’re being charged more because of it.
“We’re committed to helping people be safer and smarter drivers, and a big piece of that is educating consumers on how the behavior of other drivers impacts their wallets,” said Dave Pratt, general manager of usage-based insurance for Progressive. “Consumer awareness of the benefits of UBI continues to grow, and we’re encouraged as we see new drivers, including young drivers, seek a more personalized rate that allows us to award safe drivers with discounts they deserve.”
In conjunction with the survey, and following a successful national advertising campaign launched in April 2013, Progressive has released a second round of “Rate Suckers” TV spots in a continued effort to shed light on a problem most drivers don’t know they might have. The new ads show “Rate Suckers” attaching themselves to the car of a driver who was previously unable to avoid paying for the bad habits of others around him. The solution is Snapshot, which repels the Rate Suckers once plugged into the car.
“People are angry that they’re paying more for insurance because of the bad driving habits of other people, and they have every right to be – it’s just not fair,” said Progressive chief marketing officer, Jeff Charney. “The original Rate Suckers campaign was our wake up call to consumers to take control and stand up for their good driving behavior. After seeing the positive reaction consumers had to that initial campaign, we decided to turn up the volume with a new round of disruptive ads.”
Source: Progressive Insurance
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