Variable Insurance Premium for Safer Driving: a Survey Result

Driving involves a risk of having accidents, of which insurance companies cover the financial consequences. They would prefer their customers to drive safer. A survey was carried out to study drivers' reactions on variable insurance premiums. An in-car device would record the driving behaviour and send an aggregated report, calculating the reward based on total distance, distance less in risky conditions (nighttime, speeding) or environments (urban, extraurban). According to the survey, 27% of the drivers is willing to change to an insurance with a variable rate, and that this hardly depends on the final reward, but it depends more the driver himself. Approximately 25% indicates to change the driving behaviour due to the variable premium. Finally, drivers are not simply choosing the cheapest insurance, but value some elements (e. g., reward for total mileage) more than others (e. g., reward for urban mileage).