70% of Drivers Say They’ve Felt Unfairly Judged by Auto Insurers: Arity Report

A new survey reveals consumer frustration with auto insurance pricing models and growing support for more transparency in how policies are priced and for telematics.

The new research from mobility data and analytics company Arity suggests that drivers who feel that their auto insurance premium doesn’t reflect how they actually drive have plenty of company.

In a survey of 1,000 U.S. drivers with characteristics that may impact insurance access – such as lapsed coverage, traffic violations, or low credit scores – Arity uncovered a recurring theme: Many feel penalized by traditional proxies of risk.

A majority of respondents said they believe their current policy doesn’t reflect their real-world driving behavior and 70% said they’ve felt unfairly judged or stereotyped when shopping for auto insurance.

“Drivers are telling us loud and clear: They want accuracy, transparency and control,” commented Gary Hallgren, president of Arity. “This survey sheds light on what drivers actually want from insurers: pricing grounded in their actual driving behavior, not just personal traits or outdated assumptions.”

But while 53% of respondents said they want insurers to use driving behavior data to reward safe habits and create more accurate rates using telematics-like models, 89% still express concerns about how that data might be used, particularly around privacy, premium increases, or unauthorized sharing.

Founded by The Allstate Corp. in 2016, Arity is a mobility data and analytics company focused on improving transportation. The company collects and analyzes data using predictive analytics. The firm says it has collected more than two trillion miles of driving data to create a greater understanding of how people move.

The survey also found that 89% said they have experienced negative misconceptions, including:

• Paying more due to non-driving factors like low credit scores (54%)
• Being assumed financially unreliable (32%)
• Being treated differently based on age, gender, or other personal traits (28%)

According to Arity’s Hallgren, the results present an opportunity for insurers to build trust through greater transparency and pricing that better reflects how people actually drive.

“This moment is about more than pricing,” Hallgren said. “It’s a chance to strengthen the relationship between insurers and drivers,” added Hallgren. “Drivers want to feel in control. They want clarity instead of guesswork. And they want to know their everyday behavior behind the wheel plays a greater role than things like past incidents or credit scores.”

Topics Carriers Auto Legislation Personal Auto