Distracted Drivers Are Costing Insurers Big Money

By: William Forbes

CNN posted an article today on how Arity, a unit of Allstate insurance, is developing a technology to track smartphone use in cars. The hope is that Allstate will be able to tell when drivers are actively using their phones while operating a vehicle. And, at some future point, Allstate may use the information to determine car insurance rates. 

It's an interesting article, but the most shocking and fascinating points, to me, were in Arity's research. The article says, "Arity analyzed data from 160 million trips by hundreds of thousands of Allstate drivers. What it found confirmed research showing that drivers on their phones are more dangerous."

Using claims data, Arity found that distracted drivers are costing insurers 160% more than drivers focused on the road. The research confirmed that distracted drivers are more likely to get into an accident and these crashes tend to be more severe.

In fact, Arity recommends drivers put their phones into airplane mode before heading out in the car.

Distracted driving is a topic we at Forbes Insurance Agency have posted about in the past, and will continue to shout about. The effects of distracted driving and using your phone while you drive are now being studied by multiple agencies, and they are all saying the same thing - this behavior is causing more accidents, more fatalities, and more expensive claims for insurers.

Here is a link to the full CNN article, titled, "Do you text and drive? Your car insurance may go up," http://money.cnn.com/2018/01/24/technology/texting-and-driving-distracted/index.html.

Here are links to some of our past blog posts on this topic:

  1. Smartphones Are Killing Americans: https://forbes-insurance.com/forbesinsuranceblog/2017/11/1/smartphones-are-killing-americans
  2. Why Are Car Insurance Prices Rising? https://forbes-insurance.com/forbesinsuranceblog/2017/6/7/why-are-car-insurance-prices-rising
  3. Claims Increase The Cost Of Insurance: https://forbes-insurance.com/forbesinsuranceblog/2017/3/8/claims-increase-the-cost-of-insurance
  4. Pennsylvania Passes Daniel's Law - Stricter Penalties For Texting And Driving: https://forbes-insurance.com/forbesinsuranceblog/2016/11/8/pennsylvania-passes-daniels-law-stricter-penalties-for-texting-and-driving