With all the changes brought on by the COVID-19 pandemic, many advancements in various industries have gotten lost in the shuffle. But independent agents understand the importance of staying up to date with the latest technology and market trends. That’s why no agent should overlook the rise of telematics.
Telematics has been making waves not just in the U.S., but worldwide as well. Since 2020 consumer participation in telematics has increased 30%.1 The telematics market boom follows the increase in consumer interest, which has risen significantly in recent years for more than just one reason.
Consumers are looking for ways to save
According to a recent Nationwide Agency Forward telematics survey, 73% of consumers are concerned about the rising cost of car insurance, up 15 points from last year.2 That means that when evaluating auto insurance options, customers are likely focusing most heavily on value.
If selecting an auto insurance carrier was as simple as comparing base rates, the decision process might be easier. However, customers trust agents for a reason: to help find not just the best cost, but the best value in terms of what they get for their money. Often this means taking additional discount programs into consideration. Nearly two-thirds of consumers trust their insurance agent to offer guidance on driving behavior programs to help them save money on insurance.2
The demand for personalization is greater than ever
Telematics has become even more relevant as consumers continue to seek more personalization in their purchases.
“With each generation, the demand for customization has become more widespread: 74% of Gen Zers are interested in personalized products compared to 67% of Millennials, 61% of Gen Xers and 57% of Baby Boomers3.”
Telematics goes beyond a “one-policy-fits-all” approach to provide rates that match consumers’ lifestyles and driving habits. With usage-based insurance options, customers gain more control over their auto insurance premiums and exciting opportunities for additional discounts.
It’s up to agents to bridge the gap
So, what’s the catch? Why isn’t everyone signed up for telematics already? The truth is that a disconnect exists between the general awareness of telematics and the knowledge of its incredible savings potential:
“Only 16% of consumers are aware of the potential cost savings that come from participating in telematics programs2.”
Contrastingly, a majority of consumers say they would allow a telematics device to capture their driving behavior if it provided a discount.4 And even most privacy concerns dissipate with the prospect of a decrease in customers’ auto insurance rates. All it takes is someone to start the conversation.
Nationwide makes it easy to start talking telematics with your customers
Our leading-edge telematics programs, innovative technology and streamlined educational materials help cut through the clutter so you can deliver outstanding value to your customers without hardly having to change your sales process. Finding the right fit for each customer is a cinch, with two simple programs for different driving needs: SmartRide® rewards safe driving behavior, and SmartMiles® offers flexible rates based on miles driven.
With a few clicks, you can set your comparative rater to include telematics in your quotes and start to discover what sets Nationwide apart. The integration helps provide an automatic recommendation about which program is best for your customer. From there you can let us offer the support while your customers start to save – while you continue to focus on growing your business.
To learn more about how offering Nationwide telematics can help you improve your sales and retention,5 visit nationwide.com/offertelematics.