Will Incentivized Driving Programs Reduce Consumer Miles Driven?
February 14, 2013

by Casey Neeley, cneeley@glass.com

With an increasing number of auto insurers offering discounts for low-mileage drivers, will auto glass shops see a decreasing number of claims?

According to the Insurance Information Institute, "The idea behind usage-based programs is to give drivers a financial incentive to drive less and, depending on the information that is monitored, to drive more carefully. The more positively they react to the incentive, the less they pay for their auto insurance."

One option gaining popularity for consumers includes in-car monitoring devices which record the number of miles a car travels. Consumers looking to cut down on costs may begin to dramatically cut down on miles.

Russ Rader, senior vice president of communications for the Highway Loss Data Institute (HLDI), a division of the Insurance Institute for Highway Safety, says there is a direct correlation between high-mileage drivers and an increase in insurance claims.

"Looking at selected popular models such as the Toyota Corolla, Honda Accord, Chevrolet Silverado pickup, Honda CR-V and Jeep Liberty, HLDI found that higher average mileage corresponded to higher rates of insurance claims for collision," says Rader.

"Compared to the average of 30-39 miles traveled per day, insurance claim frequencies were 23-33 percent lower for vehicles averaging less than 10 miles traveled per day, and 31-74 percent higher for vehicles averaging 100 more miles traveled per day."
Rader says the research shows auto glass shops can anticipate fewer claims if these programs continue gaining popularity.

"A collision claim is different than a claim for glass repair handled under comprehensive coverage but it does show that in general, insurance claims would be expected to be lower for vehicles traveling fewer miles per day," he says.

This story is an original story by AGRR™ magazine/glassBYTEs.com™. Subscribe to AGRR™ Magazine.
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