Telematics is no longer an industry buzzword. Every top auto insurer has had a telematics program for years. These programs have evolved beyond usage-based insurance to include life-saving crash assistance, rewards, and more.

They’re also growing in popularity. Insurers are offering telematics programs more often, with some reporting take rates above 50%. From 2020 to 2023, CMT saw a whopping 142% increase in telematics adoption across its platform.

There’s no question about whether telematics programs work. They’re proven to reduce driving risk.

But what do drivers think about telematics programs?

To find out, we surveyed over 1,100 drivers in 2023 and 1,350 in 2024. We asked them everything from their thoughts on UBI programs to their shopping habits and digital habits. Here’s what we uncovered.

Growing awareness and approval

From 2023 to 2024, consumer awareness and approval rose. In 2024, 28% of drivers said they were extremely familiar with UBI programs — a 41% increase from 2023. More consumers also viewed UBI favorably, with the number rising from 86% in 2023 to 87% in 2024.

Savings drive adoption

With rising premiums and claims inflation, saving money on auto insurance was on consumers’ minds. In early 2023, 31% of consumers had looked for savings in the past 3-6 months. In 2024, that number grew by 23%.

The search for savings also became even more frequent. The number of drivers who had searched for savings in the past 3 months increased by 42%.

Consumers’ need to save has increased telematics adoption. Drivers can save 10-15% on their premium by enrolling in a telematics program. If drivers prove they’re safe, they can save up to 50% upon renewal. 

Consumers want savings

Getting a big discount remains the #1 reason why consumers sign up for UBI programs. However, drivers started caring more about immediate savings in 2024. In 2024, 35% of people said they signed up for a usage-based insurance program for immediate savings — up 21% from 2023.

Meanwhile, other reasons like getting rewards for safe driving and crash assistance were lower on the list.

Consumers are seeing the positive impact on their wallets. In 2024, 77% of consumers said they saved at least $100 on their insurance. 21% of consumers said they saved over $300  — a 26% increase over 2023. 

As consumers see the savings, they become more loyal to their carrier. In 2024, 93% of drivers reported feeling more positively about their insurer after joining a safe driving program. At 43%, more consumers said they’d “definitely” stay with their insurer — up from 34% in 2023. Additionally, 37% said they would “probably” stay with their current insurer.

The result? More consumers are safe driving program advocates. Over 93% of consumers said they’d recommend their program to their friends and family. With word of mouth being a powerful motivator behind purchasing decisions, this is great news for telematics growth in 2025.

The more consumers hear about digital offerings and become more digital themselves, telematics programs will become even more attractive. Consumers’ digital fingerprints grew 9% in 2024, with 47% of people making a purchase with an app in the past week. Further, consumers prefer filing insurance claims digitally now.

Consumers think it’s fair

Consumers have also developed a stronger opinion about setting insurance rates based on how safe you drive. Overall, 92% of US consumers agree that every US driver’s premium should be based on how safe they drive. While this number has held steady over the past year, those who strongly agree rose by 18%, from 42% to 49%.