A recent study by researchers at the Perelman School of Medicine at the University of Pennsylvania found that drivers whose insurance rates were determined by their driving behavior and who received tips on improving their habits showed safer driving patterns. The findings, published in Accident Analysis & Prevention, indicate that these drivers were less likely to speed, brake hard, or accelerate rapidly compared to those not participating in such programs.
The research observed a reduction in speeding by up to 13 percent and a decline in hard braking and rapid acceleration by up to 25 percent. Notably, participants maintained improved driving habits even after incentives ended.
“Insurance companies are happy to give discounts to customers who drive safer because it means they will have fewer crash claims later on,” said Jeffrey Ebert, PhD, director of Behavioral Science in the Penn Medicine Nudge Unit.
Ebert noted that with over 6 million vehicle crashes and 2 million injuries annually in the United States, widespread adoption of these programs could potentially result in 300,000 fewer crashes and 100,000 fewer injuries each year.
Usage-based insurance (UBI) programs are offered by all major auto insurers. About one-quarter of U.S. drivers participate in these programs, which use smartphone apps to track behaviors such as hard braking and phone use while driving. Safer drivers typically receive lower insurance quotes through these programs.
“All of this should make usage-based insurance customers safer drivers—and earlier research found evidence that it does,” said Ebert. “But we wanted to definitively test this and ways to strengthen programs.”
The team conducted a nationwide randomized trial involving three different feedback approaches for improving driver safety. All groups had the opportunity to earn up to $100 based on safe driving:
– Standard feedback: Weekly text messages with scores and tips on four behaviors.
– Assigned goal: Feedback focused on one behavior selected by an algorithm; weekly improvement goals were provided.
– Chosen goal: Drivers picked one behavior themselves and set weekly goals for improvement.
A control group did not receive any feedback or financial incentive. The program lasted 12 weeks with an additional six-week monitoring period afterward.
All three intervention groups improved their overall safety scores similarly—reducing rates of speeding, hard braking, and rapid acceleration—and retained these safer habits beyond the end of the program.
However, there was no significant change regarding phone use while driving. According to Ebert, “The average participant was basically told by the program that they had an ‘A’ grade for phone use despite handling their phone 6 percent of the time. Given how dangerous this is, the average should have been a ‘C.’ Drivers likely ignored this behavior and focused on improving in the other areas they considered more important.”
Ebert suggested further improvements could be made using behavioral science strategies: “For example, we have seen before that giving drivers small, weekly rewards can be much more motivating than one big reward at the end of a 12-week program.”
The study was funded by a grant from the AAA Foundation for Traffic Safety.
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