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By Tara Baukus Mello
The interest in use-based car insurance -- where consumers pay insurance rates based on their driving habits -- is growing, with 36 percent of consumers saying they would change carriers for a 10 percent discount on their car insurance rates, according to the 2013 Telematic Survey by Lynx Research Consulting for LexisNexis.

Usage-based auto insurance uses a telematics program to determine the time, frequency and manner in which the car is driven, collecting the information and providing it to the insurance company to determine if a driver is eligible for discounts on insurance premiums. One-third of respondents said the idea was appealing and are likely to allow a personal smartphone to be used to collect and transmit the necessary data.

The study found that 61 percent of drivers are more likely to accept telematics if insurers offer a three-month trial period, while 72 percent are more likely to accept a program if the car insurance provider offers an automatic 10 percent discount during the first six months.

How about you? Would you accept telematics?

Posted 10:46 AM

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