Customers Choosing Telematics at USAA

P&C Specialist reports that USAA's Telematics Program: SafePilot is taking off, with 50 percent of new customers signing up for the program which gives discounts for good driving behavior as well as for reduced mileage.

What does this indicate about the changing market?
1. With less driving and more customers working from home, customers are using telematics to add a usage component to their premiums: paying less when they drive less.
2. Good customers are increasingly willing to cooperate with carriers on a much more intimate level if the payoff is there.
3. The more good customers that are willing to participate in telematics, the greater the predictive power of refusing to participate becomes. The question becomes: how can carriers use that information when evaluating a risk?

USAA today rolled out increased discounts for current and new policyholders in its SafePilot telematics program, as the No. 5 personal lines carrier builds out its usage-based auto insurance product.

Under the initiative, existing customers will see the maximum discounts they earn for safe driving increase to 30% from 20%, while new policyholders could save as much as 10%. The discounts will be available in Texas, Ohio, and Arizona.

The announcement comes just days after USAA launched what it described as an “aggressive” roll-out of its SafePilot telematics program in the majority of U.S. states. The product expansion comes as consumer demand for the SafePilot service grew by more than 200% over the course of last year as driving behavior was impacted by the COVID-19 pandemic.

The product, which is currently available only in Texas, Ohio, Arizona, and Virginia, has lured nearly 50% of new customers in those states to sign up for the program, with more than 106,000 telematic policies in place as of December, as reported by P&C Specialist