Distracted Driving Predominantly Stems from Mobile Phone Usage
The Insurance Information Institute (Triple-I) has released a timely report titled "Distracted Driving: State of the Risk." This report sheds light on the growing concern of high-risk driving behaviors and their implications for the insurance industry and policyholders.
According to Dale Porfilio, the chief insurance officer at Triple-I, distracted driving poses significant challenges for the industry. Governmental and private sector studies have identified cellphone use, which includes dialing, texting, and browsing, as one of the most prevalent and highest-risk behaviors on the road.
To combat this issue, telematics and usage-based insurance (UBI) technologies are gaining traction. These technologies can potentially influence drivers to change their behaviors and reduce the number of accidents. The Insurance Research Council conducted a survey in 2022 about the effects of telematics programs on driver behavior.
The survey revealed that participation in telematics programs has led to changes in driving behavior among a majority of drivers (80%). Specifically, 45 percent of drivers reported making significant safety-related changes, while another 35 percent made small changes. However, the survey did not specify the exact nature of these changes.
The report also examines the effects of distracted driving and its contribution to more hazardous roadways. Distracted driving has been a leading cause of higher rates of accidents, injuries, and deaths following the pandemic. In 2021, 2.5 percent of drivers stopped at intersections were using hand-held phones at any moment, according to a 2022 national observational survey from the National Highway Traffic Safety Administration (NHTSA).
While the Insurance Research Council survey did not provide information on how these changes in driving behavior affected insurance costs for policyholders, it is worth noting that policyholders became more comfortable with insurers monitoring their driving behavior during the onset of the pandemic when it resulted in potentially lower insurance costs.
If telematics leads to safer roadways, auto insurance can become more affordable. By understanding a driver’s risk profile and tailoring auto insurance rates based on individual driving habits, insurers and their policyholders can work together to promote safer driving and more affordable insurance premiums. However, more research is needed to fully understand the impact of telematics programs on the number of accidents and insurance costs.
The U.S. personal auto insurance industry's combined ratio soared to 112.2 in 2022, meaning insurers paid out approximately $1.12 for every dollar they cumulatively collected in premiums. This highlights the need for innovative solutions like telematics and UBI to help reduce risk and make auto insurance more affordable for all.
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