Users' Privacy Concerns and Attitudes towards Usage-based Insurance: An Empirical Approach

Usage-based Insurance (UBI) is a car insurance model in which the insurance payment calculations are based on driving data such as speed, acceleration, braking, location, etc. Driving data are collected and analysed by the insurer to provide feedback on driving performance, help drivers improve their skills, and possibly apply a discount on their next renewal. So far, UBI research has been focused more on its architecture, benefits, or acceptance, while the users' perception of such forms of insurance and their privacy concerns received less attention. To fill this gap, we conducted an online survey with 281 participants and analysed their responses using qualitative and quantitative methods. We found that data collection and sharing are the main privacy concerns. Furthermore, we identified potential discounts as the most important feature in favor of adopting UBI, while data collection and unfair ratings are the main reasons to avoid or quit UBI.