A new survey shows many drivers are frustrated with how their car insurance is priced and want more honesty about how rates are set. The study, conducted by Arity, a company that analyzes driving data, found that lots of people feel their insurance costs don’t match the way they actually drive.
Arity asked 1,000 drivers across the U.S. who have factors that often affect insurance, like gaps in coverage, traffic tickets, or low credit scores. Many said they feel punished by the usual ways insurers calculate risk. In fact, most said their current policy doesn’t reflect their real driving habits, and 70% felt unfairly judged or stereotyped when trying to buy insurance.
Gary Hallgren, president of Arity, explained that drivers want their insurance prices to be based on how they drive, not on old assumptions or personal details like their credit score or age. Around half of the people surveyed want insurers to use data about driving behavior to reward safe drivers with better rates. However, a big concern remains—89% worry about how this data could be used, especially when it comes to privacy or the risk of rates going up.
Arity was started in 2016 by The Allstate Corp. The company collects and studies huge amounts of driving data—more than two trillion miles worth—to better understand how people get around and to help improve transportation.
The survey also revealed that many drivers face negative stereotypes. Over half said they pay more because of things that aren’t related to driving, like having a low credit score. About one-third felt seen as financially unreliable, and more than a quarter said they are treated differently because of their age, gender, or other personal details.
Hallgren sees a chance for insurers to gain trust by being clearer about how they price insurance and by focusing on real driving habits. He said drivers want to feel in charge of their policy and to see that their everyday actions on the road matter more than their past mistakes or financial background. This could be a step toward better relationships between drivers and their insurers.