Usage-based car insurance is losing popularity among American drivers.
According to a recent survey conducted by Princeton Survey Research Associates International (PSRAI), 51 percent of Americans said they would never consider using a pay-as-you-drive insurance program, up from 37 percent last year. The survey suggests that millennials are most likely to use such a service and that they are also the least concerned with privacy issues. Interestingly, 26 percent of respondents said they did not know how usage-based car insurance worked while 21 percent said their primary concern was sharing personal information.
SEE ALSO: What is Usage-Based Car Insurance?
Usage-based car insurance generally employs a small sensor installed on the vehicle, like the one pictured above, to track mileage, what time of the day owners are driving and how hard drivers hit their brakes. The survey finds that many Americans incorrectly believe that those sensors monitor for drunk driving and driving in high-crime neighborhoods, which they do not.
It also showed that millennials are more than twice as likely as their older peers to hear about pay-as-you-drive insurance from friends or family. Nearly 75 percent of Americans said they learned about usage-based car insurance through a television commercial.
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