How to overcome customers’ top telematics objections
Customers seeking to manage and have more control over their auto insurance costs may be interested in telematics, but certain misconceptions may be holding them back. A recent study conducted by J.D. Power reported that consumer participation in telematics has increased by 33% since 2020. The increase can be attributed to more customers beginning to understand the savings opportunities that exist.
This rapidly growing interest in today’s auto customers presents agents with a key sales opportunity. With telematics, agents are prepared with tools that help make their customers feel at ease with their insurance decision. To assist, below is a list of common customer concerns you’re most likely to face along with useful facts to help you best respond.
Common Customer Objections & How to Respond:
Objection #1: “My rates will go up.”
Fact: Most insurance carriers use driving data to help reward customers with discounts, not raise their rates.
Objection #2: “I have privacy concerns and telematics puts me at risk for data breaches.”
Fact: At Nationwide we understand the importance of data security and are committed to protecting our customers data. Data transparency is also importance to which is why we allow our members to easily see the specific data we collect through our fully secure mobile app or online web portal. And like most carriers, Nationwide never sells this information to third parties.
Objection #3: “Telematics is complicated to activate and use.”
Fact: Though it depends on the program, most customers will likely only need to download an easy-to-use app that can be activated in as little as five minutes.1 In other instances, some customers may need to plug a small device into their vehicle by following simple step-by-step instructions. Those driving a newer connected car may have the option to simply have their vehicles manufacturer securely share the driving data directly with their carrier.
Objection #4: “It’s unclear how telematics tracks my driving, and why those factors are important.”
Fact: Usage based telematics programs determine customers’ rates based on how they drive. At Nationwide, we use factors such as mileage, hard breaking and fast acceleration to measure driving behavior. And we give customers access to the driving data we collect, so they can see how their driving behavior will adjust their rates and maximize their savings.
Objection #5: “Telematics won’t save me money.”
Fact: Nationwide customers will earn an immediate 10% discount just for participating in our SmartRide program and have the potential to increase that discount up to 40% based on how safe they drive.3 Our SmartMiles program is another option that help low mileage drivers lower their premium based on miles driven.
Objection #6: “No one uses telematics.”
Fact: Customers are increasingly drawn to telematics for the chance to save on their auto premiums. In 2020, customer interest in telematics increased by 30%2 — and it is only getting stronger.
Objection #7: “It’s always hard to get ahold of customer service.”
Fact: Nationwide has dedicated support which connects a customer or agent immediately to a telematics expert who can answer any questions you or your clients have about billing, claims, discounts, rating factors and more.
Nationwide continues to make telematics easier to sell and easier to support
With two easy-to-understand programs that are integrated with the comp raters you use, we make it easy to place customers in the best program that fits their needs. And by handling the customer onboarding process with effective communications and providing an intuitive app experience, we make it easier for agents to support their customers. When needed, Nationwide offers dedicated support to you and your customers to help handle any ongoing issues or answer any additional questions allowing you to focus on sales and growing your business.