Privacy concerns over usage-based auto insurance have ‘generally decreased,’ Towers Watson surveys indicate

More than seven of eight respondents to a recent survey said they would be “willing to consider” usage-based auto insurance if their carriers guarantee their rates would not increase, Towers Watson & Co. said Wednesday.

“Most (79%) of the 1,000 respondents surveyed said they either would buy a UBI policy or are willing to consider the concept, and if insurers guarantee drivers’ premiums would not rise, that percentage increased to 88%,” Towers Watson stated in a release.

“Nearly half (48%) of consumers still feel unease about potential higher premiums due to UBI,” the company stated. “This continues to reinforce popular decisions to offer only discounts – not surcharges – based on UBI data. “

New York City-based Towers Watson provides services including risk consulting and reinsurance brokerage.

The number of survey respondents who have, or had, a UBI policy in the past 17 months was 8.5% (up from 4.5% of consumers surveyed in February, 2013), Towers Watson noted.

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“While the interest level remains stable, consumers’ privacy concerns about UBI have generally decreased over the last year and a half,” Towers Watson stated. “Just over one-third (35%) of respondents indicated unease concerning insurers monitoring their driving destinations, compared to 42% from last year’s survey.”