‘Tis the Season to be Driving 
For the past few years, Nationwide claims frequency has shown other risky days are the Friday before Christmas (December 19 this year), with an increase in auto accidents peaking on December 23.  

“The holidays are busy enough, don’t add risk to the mix,” said Casey Kempton, President, P&C Personal Lines. “The simplest way to stay safe is to keep your eyes on the road and your phone out of reach. A quick text or scroll isn’t worth the danger it creates for you, your passengers, and everyone sharing the road.”

Distracted Driving in a Winter Wonderland 
There is a good chance while driving to do your holiday shopping, you’ll see another driver looking at their phones behind the wheel.   

According to the latest driving survey from Nationwide, the overwhelming majority agree driving has become more dangerous, reporting that other drivers are more often looking at their phones (92%). Even more alarming, 1 in 10 (11%) confess to reading or writing emails while driving.*   

An analysis using Nationwide SmartRide data revealed that the average driver experiences five or more distractions in a 20-mile commute, with each distraction averaging 15 seconds at 45mph—this is equivalent to driving blind for over the length of three football fields!   

Nationwide’s ‘Focused Driving Rewards®’ Can Encourage Safer Habits  
To help combat these issues, Nationwide has introduced the Focused Driving Rewards (FDR) program,** a first-of-its-kind initiative that rewards all drivers, both existing Nationwide members and non-customers, for reducing phone use behind the wheel.  

Key details include:  

• App-Based Participation: The program is managed through the Nationwide app, with participants earning points redeemable for gift cards when they avoid distractions over time.
• Rewards Pilot Success: FDR launched successfully across more than 40 states in 2025. Since the start, we’ve seen 38% of drivers enrolled have lowered their distraction levels, with those showing improvements averaging a 39% reduction. Notably, the most significant improvements have come from reduced phone tapping while behind the wheel.
• No Strings Attached: FDR is open to everyone, not just Nationwide customers, and offers up to $60 every six months in gift cards for those that keep their focus on the roads while driving.
• Simplicity & Focus: The program only considers phone handling events (like tapping, hand-held calls, or phone motion), making it an easy way to try out a telematics experience and be rewarded for improved focus.  

Deck the Halls with Updated Insurance 
The holiday season is a great time to review your insurance coverage with your agent to make sure you have the right coverage for your needs. The claims data shows that drivers have good reason to be apprehensive about driving around the holidays; knowing you’re covered in case something does happen can bring some relief.  

*Nationwide Driving Behaviors Survey 2025, a nationally representative online survey of 1,000 general consumers and 400 commercial drivers from March 5-18, 2025.   
**Focused Driving Rewards is not currently available in AK, CA, FL, HI, LA, MA, NY or OK. Drivers 29 years and younger can earn up to $60 every 6 months. Drivers 30 years and older can earn $2.50 every 2 weeks, up to $30 every 6 months. Focused Driving Rewards is not insurance and does not require the purchase of a policy or a quote. Participation is optional and subject to terms and conditions. Nationwide may terminate the program at any time. 

In late 2023, Nationwide partnered with Resideo to offer U.S. homeowners tech-enabled prevention capabilities to help avert unexpected damage that occurs in the home. As part of this partnership, the companies analyzed the role Resideo’s Honeywell Home and First Alert devices played in loss prevention for their customers.  

Their analysis^* showed both a frequency and severity reduction for customers who had at least one Resideo device installed. For example, the study* found that the customers with protective First Alert or Honeywell Home devices are experiencing loss frequency and severity benefits, yielding a reduction in average claim costs of $4,000.  

“The results highlight the potential for tech-enabled prevention capabilities to help avert unexpected damage and suggest benefits of catching hazards early,” said Linsey Miller, Resideo, Senior Vice President, Business Development & Strategic Marketing. “There are several cost-effective Smart Home device options that can offer awareness and control to help prevent costly water, fire or other security-related damage to your home.”  

Nationwide’s 2024 Homeowners** survey reveals that smart home tech has increased over the last year:  

• 42% own a smart video doorbell (up 8% from 2023) 
• 36% own a smart thermostat (up 6% from 2023) 
• 38% own smart home security cameras (up 5% from 2023) 
• Only 25% own a smart sensor to monitor for smoke or carbon monoxide 
• Only 10% own a smart sensor that can monitor water flow and leaks

A water leak detection device can be one of the easiest to set up. They simply need to be placed near a toilet, water heater, sink, or laundry area to monitor for leaks. Beyond detecting leaks, Resideo devices also monitor temperature and humidity which can help prevent frozen and burst pipes, as well as moisture in the air that could lead to mold and mildew damage.  

“The biggest miss among homeowners is not having at least one of these devices in your home,” said Sarah Jacobs, Nationwide’s Vice President of Product Development. “Being able to detect a problem as it happens not only can save homeowners money, but it also can provide them peace of mind knowing that your home - one of your most important assets - is better protected with smart detection.”    

For more information about the Nationwide Smart Home program, click here.  

*The study included 3.6M policies and 86,000 smart home devices and reviewed insurance claims from fire (non-wildfire), water (including weather), liability and theft, and other non-weather events, including vandalism.   

**Nationwide Agency Forward Homeowner Survey – SmartHome Results

The quantitative analysis of auto collision claims data aligns with the general sentiment of driving research conducted by Nationwide earlier this year. The data highlights passenger vehicles and company vehicle driver’s pain points that everyone should consider to safely share the roads during this busy time of year.  

A Call for Attention and Safety 
The general sentiment among drivers is alarming: both groups perceive a decline in road safety compared to just 12 months ago. Company vehicle drivers feel drivers of passenger cars are more distracted today (82%), looking at their phones more often today (80%), driving faster today (78%), driving more reckless today (76%), not driving safely around company vehicles (76%), and driving more aggressive today (76%). 

Roughly 9 in 10 passenger vehicle drivers say drivers overall are more aggressive (90%), more reckless (86%) and more often looking at their phones (92%) today compared to 12 months ago.  

As we gear up for the summer driving season, these statistics serve as a stark reminder of the importance of attentive driving. Let’s make this summer a safe one by being mindful of our actions on the road and considering the advice from fellow drivers. Remember, safety is a shared responsibility. 

¹ This data, drawn from personal auto, motorcycle, RV, and commercial auto policies over the loss years 2021-2023, underscores the need for heightened awareness during these “peak summer driving months.”

By the numbers:  One-third of company drivers (34%) “often or sometimes” feel distracted while driving for work purposes – mostly caused by known safety hazards like operating GPS/navigation systems (55%), interacting with radio or music systems (41%), or responding to work related texts (36%).

More than a quarter (27%) also daydream behind the wheel and 13% are checking social media apps.

What you should know: Staffing shortages may be contributing to risky driving behaviors as drivers work longer hours and face challenging deadlines.

• 4 in 10 drivers say their employer is struggling with staffing shortages, leading to increased workloads (61%), longer hours (58%) and more difficulty meeting deadlines (47%).
• Drivers are facing distractions due to work demands:
  • 55% take work phone calls while driving
  • 30% read/respond to work texts while driving
  • Nearly 1 in 5 read work emails (18%) or respond to work emails (16%)

Why it matters: Driver shortages are also fueling concerns about overall workplace standards and practices that could impact the safety of company drivers and the general public on the roads with them.

• 42% of drivers say their employer has reduced hiring criteria
• 39% say employee training has suffered
• 34% say there’s less of a focus on safety

What drivers are saying: 6 in 10 company drivers are worried about their own personal safety and liability behind the wheel – not surprising considering more than half have been involved in or witnessed an accident in the past year.

As a result, 72% want their management to increase the training being provided to drivers to help prevent accidents and improve safety.

Drivers are also overwhelmingly supportive of technology like dash cams and telematics, which they feel can improve their safety on the roads and increase transparency and accountability. Despite this, only 38% of drivers say their employer requires a dash cam or monitors their driving with telematics.

What we’re saying: For businesses with fleet vehicles, a comprehensive safety program is a key piece of the protection puzzle and should include everything from robust hiring and training criteria for drivers, to written policies/procedures that address all sources of distractions, to implementation of technology like dash cams, cell blockers or telematics that can help increase safe behaviors.

“Business owners may have opportunities to elevate the training and safety resources they’re offering for drivers, further demonstrating their commitment to their workers and, in turn, potentially helping with hiring and retaining good drivers in the future,” said Kristina Talkowski, Nationwide’s leader of Middle Market Commercial Lines. “Safe, high quality drivers also welcome technology like dash cams that can help improve safe driving behaviors and stave off legal system abuse that’s negatively impacting insurance customers through higher insurance costs, longer claims resolution times and limited access to coverage.”

Go deeper: View the full survey results  or leverage your carrier’s loss prevention services for business fleets such as educational resources, safety training, and other in-person or virtual services.

“A little bit of proactive effort can save a lot of money for business owners in the long run across Business Auto and Workers Comp costs,” added Talkowski.

Methodology:
Edelman Data and Intelligence (DXI) conducted a national online survey of 400 commercial drivers* and 1,000 general consumers from March 4 – 15, 2024. As a member in good standing with The Insights Association and ESOMAR, Edelman DXI conducts all research in accordance with local, national and international laws and in line with all Market Research Standards and Guidelines.

*Note: Commercial Driver audience does not include long-haul/heavy trucking, tow trucks, app-based delivery drivers (e.g. DoorDash), or large corporate delivery drivers (FedEx, Amazon, UPS, etc.).

New data reveals that drivers continue to be distracted behind the wheel. The latest driving behaviors survey from Nationwide polled standard drivers and commercial drivers and revealed additional risky behaviors that are impacting all drivers on the road. 

One-third (34%) of commercial drivers admitted they sometimes or often feel distracted behind the wheel, and their peers are noticing, because 6 in 10 agree that other commercial drivers are looking at their phones more often and driving faster than they did a year ago. 

By the numbers: The primary causes of distractions for commercial drivers: 

• 55% using GPS/Nav systems 
• 36% responding to work text messages 
• 27% texting/talking on mobile phones 
• 13% checking social media apps 

Why it matters: Many commercial drivers report taking these actions for work purposes. This could suggest they are feeling pressured by their employer to make tight timelines, which are causing distractions while behind the wheel.  

• 90% of consumers say that they feel it is dangerous to hold a phone in their hand while driving, whether to talk, text or navigate.  

It’s not me, it's you! Consumers say the problem is other drivers, with 8 in 10 (80%) rating their own driving as ‘very good’ or ‘excellent,’ compared to other passenger cars on the road (14%) or commercial vehicles (25%). Overwhelming majorities agree driving has become more dangerous, reporting other drivers are more often looking at their phones (92%). 

What we’re saying: “Nationwide’s telematics driving data shows that drivers take their eyes off the road at least 12 times per day. The average distraction for a driver traveling at 45MPH would cover the length of three football fields! States with hands-free laws are helping to minimize distraction, but we need all 50 states to adopt hands-free laws to continue to reduce crashes and save lives,” said Kelly Hernandez, AVP of Nationwide’s personal telematics. 

A potential solution: Many states are exploring Hands Free legislation as a way to curb distracted driving. Those laws still have strong public support.  

By the numbers:  

• 89% support laws or legislation in their state to prohibit drivers from holding their cell phones while talking or manually using their cell phones to text, email or look at anything on their phones while operating a motor vehicle. 
• 26 states and D.C. have primary hands-free laws in place, leaving 16 states that have no laws prohibiting handheld cell phone use while behind the wheel and eight more that need to strengthen their laws to primary, all driver hands-free laws. 
• Ohio passed Hands Free legislation in 2022 and saw a 16% reduction in distracted driving-related accidents in the first nine months of 2023. Over the same time period, distracted driving fatalities also declined by nearly 25%.  

Go deeper: Visit the Governor’s Highway Safety Association to see if your state has enacted Hands Free Legislation, or Nationwide’s distracted driving resource center to  learn more.  

“I think people are becoming more comfortable driving with minicomputers in the palm of their hands and they underestimate the danger of doing so,” said May, program manager at the Ohio Department of Transportation.  

The statistics confirm what May is referencing – cell phone use is leading to increased distracted driving across America.  

According to recent data released by Nationwide: 

• Drivers are distracted by their phones up to 9 times during a typical 20-mile commute, data from Nationwide’s SmartRide mobile app shows 
• Two-thirds of drivers (66%) say that holding a cell phone to talk, text or use an app while driving is dangerous, yet half (51%) admitted to doing this in the past six months, according to findings from a Nationwide survey 

These data points should make everyone think twice when it comes to grabbing a cell phone while behind the wheel of a vehicle.  

“These behaviors create a dangerous environment for everyone when we don’t give our full attention on the activity of driving, said Beth Riczko, Personal Lines President at Nationwide. “Unfortunately, we are seeing an increased use of cell phones while driving, across every demographic. Nationwide’s mission is to protect people, and it’s important that we raise awareness of this issue.” 

Nationwide used Distracted Driving Awareness Month as a platform to share the stats to encourage drivers to put their phones down while behind the wheel. When a driver chooses to look at their phone, they are impacting every single person on the roadway.  

“These devices are distracting forces in the vehicle. And if drivers don’t utilize their phone’s hands-free technology, things won’t get better – they will get worse,” added Riczko.  

Another important issue is that our laws have not kept up with this technology. For this reason, Nationwide and consumer advocacy groups have renewed their call for all 50 states to adopt hands-free primary enforcement laws. This will enable law enforcement to ticket motor vehicle operators who are using handheld mobile devices behind the wheel. States that have enacted this type of legislation have experienced a decrease in auto crash related fatalities. A recent Nationwide survey showed most Americans want these types of laws on the books.  

• 88% of consumers say they support legislation to address distracted driving 
• 86% support legislation in their state that would prohibit drivers from holding their phones while driving to talk, text or for other purposes 

In late 2020, Nationwide introduced an experience that provides customized feedback on phone distractions and it’s helping to reduce distractions on our roadways. Through the SmartRide mobile program, there has been nearly a 10 percent reduction in everyday hand-held distraction among these drivers. Providing feedback on phone use while behind the wheel increases driver’s awareness on the frequency of this behavior and reduces distracted driving crashes. 

To learn more about SmartRide’s phone distraction feature, talk to your independent insurance agent. 

“The past year-and-a-half has been anything but normal, with many areas experiencing a shift in traffic patterns and roadways becoming less congested. Rush-hour became essentially non-existent in the spring of 2020 after stay-at-home orders took effect and many people transitioned to working from home—and still are,” said Kelly Hernandez, Nationwide’s associate vice president of telematics. “With the then wide-open roads, it seems many drivers picked up a bad habit of having a need for speed, which doesn’t seem to be slowing down.”

As Halloween decorations go up, distracted driving is another monster lurking in the shadows. This summer, nearly 12% of trips included distractions on a mobile phone, and 70% of drivers were distracted daily, based on Nationwide’s telematics data. The effects of distracted driving are frightening but the outcomes can be even scarier. Nine fatalities each day are attributed to distractions and this number can be underreported¹.

“Although all age groups are distracted, our data shows the problem is much worse for younger drivers,” said Hernandez.

Nationwide is aiming to change behaviors with its SmartRide² program by providing feedback on phone distraction while behind the wheel to increase drivers’ awareness of the frequency of this dangerous behavior and help them reduce it. After launching this new experience in SmartRide last fall, Nationwide has seen a 10% reduction in everyday hand-held distractions among enrolled drivers.

To learn more about Nationwide’s SmartRide program and the ways it can help you become a safer driver click here, or talk to your independent insurance agent.

“What kind of damage could be caused in those six seconds? It may seem dramatic, but this ‘driving blind’ is happening every day on our roadways in the form of distracted driving,” said Nationwide’s Beth Riczko, president of P&C personal lines. “According to data obtained from our SmartRide^®  telematics program, the average participant is taking their eyes off the road too many times, for too long—creating a danger for themselves, their passengers, pedestrians, and others on the road.”

While a close call behind the wheel can be an eye-opening experience, it doesn’t always change driving behavior. 45% of every trip taken has a driving distraction, and over 70% of people are distracted at least once while driving each day. Our friends at Lexus put together a great video shattering the misconceptions people have about momentary distractions.

In September 2020, Nationwide’s SmartRide mobile app started showing drivers when and how they were distracted by their phones.

The distraction trends uncovered are alarming:

• The most distracted time window is 4-7 p.m.
• The majority of distractions happen between 10 a.m. to 7 p.m.
• The most distracted day of the week is Friday
• The least distracted day of the week is Tuesday
• The average speed when distractions occur is 45 mph
• The average screen tapping event lasts six seconds
• Handheld phone calls average more than two minutes (160 seconds)

“We’ve introduced an experience that provides customized feedback on phone distractions and it’s helping to reduce distracted driving on our roadways. The reality is that too many drivers are multitasking behind the wheel, putting themselves and others at risk. The good news is drivers are willing to change their behaviors,” said Riczko.

Nationwide has taken a strong position on distracted driving. Nationwide CEO Kirt Walker announced last year the company’s advocacy for all 50 states to adopt hands-free, primary enforcement laws to curb distracted driving. States that have adopted these laws have seen a 15 percent decrease in fatalities. Nationwide is also seeking the adoption of model legislation by NCOIL, the National Council of Insurance Legislators, as part of its efforts.

The company is also providing distracted driving feedback to drivers through its SmartRide² Mobile program, which is changing driving behavior. In less than a year, there has been a 10 percent reduction in everyday hand-held distractions among these drivers. The goal of providing feedback on phone use while behind the wheel is to increase drivers’ awareness on the frequency of this behavior and reduce crashes associated with distracted driving.

To learn more about phone distraction feedback provided with SmartRide click here, or talk to your independent insurance agent.

¹ Methodology: Data is from Nationwide SmartRide mobile app users. Distracted driving program launched in June 2020, with trip feedback provided to drivers starting in September 2020. Research examined phone distractions that include active screen time while the vehicle is moving more than 15km. External distraction factors not considered include eating, adjusting the radio, or Bluetooth/hands-free cell phone usage. 

² Availability varies; program criteria differs in California and North Carolina. Stated discounts are approximations. Discounts do not apply to all coverage elements; actual savings vary by state, coverage selections, rating factors and policy changes. Enrollment discount applies during data collection; final discount is calculated on driving behavior and could be zero. Final discount applies at the next policy renewal and is subject to change based upon actuarial support at subsequent renewals or with changes in drivers or vehicles on the policy.

The survey finds that while two-thirds of consumers (65%) said they would allow a telematics device to capture their driving behavior if it provided a discount, only 10% of consumers report actually using one.

Nationwide’s survey identified three key themes that shed light on consumer viewpoints regarding telematics and how personal lines agents can provide trusted counsel to their clients about the subject:

1. Consumers need to be educated on telematics; many do not know what it is or why they should consider using it.
2. Many consumers’ privacy concerns dissipate after learning they get a discount.
3. There are misconceptions about the cost and savings associated with participating in telematics.

“Usage-based insurance programs and the personalize rates they can provide are becoming the insurance choice for American drivers,” said Teresa Scharn, vice president of Personal Lines Product Development at Nationwide. “Insurance agents are the best resource to help consumers understand usage-based insurance options, design solutions to fit their needs, and potentially save them money.”

A knowledge gap
Only about a quarter of consumers (27%) say they know what telematics is, and half of those surveyed (51%) saying a lack of knowledge is the key barrier to using telematics.

Nationwide’s survey also revealed:

• 67% of consumers have not discussed telematics with an insurance agent.
• 40% of insurance agents don’t feel knowledgeable enough to speak on telematics to counsel clients.
• Agency owners might feel well versed in telematics, but their staff is less confident:
  • 79% of principals feel they provide employees enough resources
  • 63% of producers say they are provided some or plenty of resources
  • 32% of customer service reps say they are provided some or plenty of resources

“Telematics usage is increasing, and Nationwide expects the usage-based insurance trend to continue,” explains Scharn. “In 2020, customer interest in telematics increased by 30%¹, and Nationwide is projecting 70% (or more) of new business will come from usage-based insurance programs by 2025. Carriers need to provide agents with up-to-date information on the different types of telematics options, including pay-per-mile or safe driving programs, so they can confidently counsel their clients.”

Reminders for agents:

• Clients may not know what telematics or usage-based insurance is. Consider starting your next conversation by gauging their telematics knowledge and asking if they would like to learn more about how telematics can lead to potential cost savings.
• Carriers can provide agency owners and their staff with information and resources to help educate clients about telematics including how to address common objections and misperceptions.

Privacy concerns dissipate when you start talking about a discount
Usage-based insurance programs use driving data to determine whether drivers qualify for a safe driving discount on auto insurance and can provide feedback to help drivers make even safer driving decisions. However, 6 in 10 (62%) consumers have privacy concerns about the information telematics is capturing.However, the survey also showed that this barrier may be easy to overcome and lead to a conversation about telematics discounts as 65% of respondents say they would allow a telematics device to capture their driving behaviors if it provided them a discount.

How agents can address a consumer’s privacy concerns:

• Driving data collected by Nationwide is used for insurance purposes and never sold to any third-party entities. Confirm this is true with your other insurer partners.
• Remind consumers about the cost savings telematics may be able to provide. For instance, drivers that enroll in Nationwide’s usage-based insurance programs are seeing an average savings of more than 20% compared to a traditional policy. SmartRide® is an insurance program that rewards safe driving with a discount up to 40% off. SmartMiles®  is pay-per-mile insurance for low-mileage drivers that offers a flexible rate based on miles driven.

Money matters
The Agent Authority survey highlights misconceptions consumers and agents hold about the cost associated with telematics. A quarter (24%) of consumers who don’t currently use a telematics device believe there is an added cost to using one, and more than half (57%) believe using a telematics product could make their rates go up.

“This emphasizes opportunities for carriers to inform agents and their clients on how usage-based insurance works, and how consumers should be paying for the auto insurance coverage that meets their unique needs,” advises Scharn.

Nationwide’s survey also revealed:

• The rising cost of insurance is a concern for more than half (58%) of consumers. 76% of agents surveyed said the rising cost of vehicle insurance is the top concern among their customers.
• Almost half (49%) of consumers believe telematics can help them save money and are fairly split on how much they think they can save a month with telematics:
  • 32% think less than $10
  • 31% think they can save $10-19.99
  • 15% think they can save $20-$29.99
  • 22% think they can save $30 or more

Reminders for agents:

• There is no cost for a customer to enroll in many usage-based insurance programs—and at Nationwide, SmartRide consumers can only earn added discounts on their policy.
• Help clients understand their options. There are telematics programs that offer a discount based on safe driving or based on the miles they drive.

Key takeaways
Customers can count on their agents to help them become more comfortable with telematics because an agent can:

• Provide information on what telematics is and how it may fit their driving habits.
• Address privacy concerns and help them potentially save money.
• Debunk misconceptions about increased costs.

Learn more: https://www.nationwide.com/personal/insurance/auto/usage-based-insurance

*These insights and more were uncovered through Nationwide’s ongoing Agent Authority research series, which includes samples of independent insurance agents, various business owners, and consumers. Previous Agent Authority research reports: Agent-customer relationship; Small business owner needs and challenges; Middle market business owner needs and challenges; Agents' top concerns through the pandemic; Consumer and business owner cyber preparedness; Middle market business owners telematics.

Survey Methodology:
Nationwide commissioned Edelman Intelligence to conduct a 20-minute quantitative online survey among a sample of 1,600 U.S. independent insurance agents, mid-market business owners with fleet vehicles, and general consumers between June 9 – June 25 to understand what business owners and consumers value when buying or renewing insurance policies, explore the different challenges each audience faces around insurance, gauge perceptions of the economy and how each audience is managing uncertainty, and find out the actions business owners and consumer have taken as a result of COVID-19 and the conversations they're having with agents. As a member of CASRO in good standing, Edelman Intelligence conducts all research in accordance with Market Research Standards and Guidelines.

¹J.D. Power 2020 PULSE survey

The research revealed while 88% of middle market business owners with fleet vehicles trust their agent’s telematics counsel, some agents feel they can broaden their telematics knowledge and sales resources to more effectively advise clients.

“In addition to managing their business, many middle market business owners face the added concerns related to the safety of their drivers and fleet vehicles,” said Pete Frey, director of Commercial Lines Telematics at Nationwide. “The results highlight a tremendous opportunity for carriers and agents to change the conversation around telematics from being a nice ‘add-on’ perk, to what it really has become – an essential tool for operating a fleet-focused business.”

Nationwide’s telematics survey identified four key themes for commercial agents and middle market business owners with fleet vehicles:

1. Agents underestimate business owners’ knowledge and interest in telematics
2. Middle market business owners are ready and willing to invest in telematics
3. Safety and operational benefits are top of mind for middle market fleet owners
4. Carriers/Agencies can better support agents in addressing client concerns

Agents underestimate business owners’ knowledge and interest in telematics
Fleet owners may be more supportive of solutions than agents realize and are willing to pay more to track unsafe driving behaviors than agents anticipate. Additionally, some agents may be misjudging business owners’ primary motivations for using telematics.

• 64% of agents believe they’re knowledgeable about vehicle telematics devices or telematic smartphone apps.
• 14% of agents said they don’t think clients would pay at all for telematics, yet 93% of businesses say they’d pay to ensure a safer driving experience.
• 70% of business owners would be willing to pay between $20-$39.99 per month per vehicle, while more than 60% of agents said they think clients would pay $29.99 or less a month.
• Agents believe distracted driving is the top cause of accidents, but business owners see it differently, citing driving under the influence, driver error, road conditions and weather as leading causes of accidents for their fleet vehicles.

Responses also show some agents would benefit from additional resources to help them talk to commercial lines customers about the advantages of telematics, especially at the producer and customer service representative levels.

• Among the owners that haven’t adopted telematics, their biggest deterrent is a lack of knowledge.
• Nearly 4-in-10 producers and 7-in-10 customer service representatives don’t feel they have the resources needed to effectively counsel clients on telematics.

Quick tip for agents:

• “It’s a good time for agencies to revisit the types of resources and support they provide to team members, especially producers and customer service representatives, to help them effectively discuss the advantages of telematics with clients and how it’s integrated with insurance,” Frey advises. “Also, consider a carrier’s role in the sales or account review processes. In some cases, connecting a client directly with loss control or product experts can offer additional technical expertise to help guide the customer and allow you to focus on other ways to serve them.”

Middle market business owners are ready and willing to invest in telematics
Business owners estimate their fleets experience 7.5 accidents per year, so it’s not surprising their top concerns include distracted driving among employees, accidents with vehicles and the safety of drivers, and knowing the location of their business’ vehicles. Business owners also indicate they’ve done their research and are willing to invest to improve safety, with 86% aware of telematics solutions, a high rate utilizing them, and nearly 90% agreeing the benefits outweigh the financial cost.

• Top concerns for middle market business owners with fleets include: distracted driving among employees (83%); rising cost of insurance for fleet vehicles (82%); safety of employees driving fleet vehicles (81%); driving accidents with fleet vehicles (81%); knowing the location of their business’s fleet vehicles (76%).
• 94% of business owners say telematics helps protect their employees on the road.
• 91% say telematics has a positive impact on operations.
• Business owners believe leading causes of accidents to be: driver error (18%); driving under the influence (18%); road conditions (18%); weather-related causes (17%); distracted driving (15%); and vehicle failure (15%).

Quick tip for agents:

• A variety of telematics and dash cam solutions exist to help your clients prioritize safety. Learn about the different types of telematics offerings your carrier partners offer and how they can benefit commercial fleets.

Safety and operational benefits are top of mind for middle market fleet owners
Fleet owners are safety-focused with 83% offering formal driver safety training at least semi-annually and 90% employing a formal, documented accident investigation process. The operational benefits business owners see from telematics also drive adoption as they place high value on the ability to track vehicle location, evaluate driving behaviors of employees and preemptively identify maintenance needs.

• 45% of business owners believe telematics prevents accidents and insurance claims from happening in the first place.
• Business owners’ top perceived advantages of telematics include: having the ability to track locations of vehicles (48%); evaluating driving behaviors of employees (46%); preemptively identifying problematic vehicle conditions to help avoid costly repairs (43%); and providing a strong risk mitigation strategy for their business (40%).

Quick tip for agents:

• Lean on carrier partners to offer innovative telematics solutions to help drive safety and efficiency in clients’ operations. Many carriers also offer loss control and risk management resources and services, which can have a significant impact with helping improve fleet and driver safety.

Carriers/Agencies can better support agents in addressing client concerns
The survey also highlights a few misconceptions business owners hold about telematics and the difficulties with installing the technology, emphasizing opportunities for agents and carriers to better educate clients on solutions available, how they work, and how they collect and use data.

• Business owners and agents think the telematics data being collected is a privacy concern.
  • 79% of agents feel their clients are hesitant in considering telematics because they think it’s an invasion of privacy; many business owners agree as 37% say privacy of the data collected is a barrier for using telematics.
  • 83% of business owners believe the data captured through telematics could make their insurance rates go up.
• Business owners may overestimate difficulties of implementing telematics technology.
  • Business owners list the cost of investing in telematics (35%) and the time it would take to install the devices (21%) as top barriers for using telematics.

Quick tip for agents:

• “Today’s telematics programs help make it very clear to customers and agents how data is being collected and used, and the benefits customers can gain,” said Frey. “Some carriers, like Nationwide, also offer subsidies or discounts if customers opt to enroll in their programs as well as easy and quick-to-self-install technology. With growing telematics adoption among business owners, agents have a tremendous opportunity to provide needed recommendations and resources to business owners as they look for the right solution for their operation.”

*These insights and more were uncovered through Nationwide’s ongoing Agent Authority research series, which includes samples of independent insurance agents, various business owners, and consumers. Previous Agent Authority research reports: Agent-customer relationship; Small business owner needs and challenges; Middle market business owner needs and challenges; Agents' top concerns through the pandemic; Consumer and business owner cyber preparedness.

Survey Methodology:
Nationwide commissioned Edelman Intelligence to conduct a 20-minute quantitative online survey among a sample of 1,600 U.S. independent insurance agents, mid-market business owners with fleet vehicles and general consumers between June 9 – June 25 to understand what business owners and consumers value when buying or renewing insurance policies, explore the different challenges each audience faces around insurance, gauge perceptions of the economy and how each audience is managing uncertainty, and find out the actions business owners and consumer have taken as a result of COVID-19 and the conversations they’re having with agents. As a member of CASRO in good standing, Edelman Intelligence conducts all research in accordance with Market Research Standards and Guidelines.

Nationwide’s SmartRide^® mobile app powered by CMT will now show drivers when and where they were driving while distracted by their phones. Nationwide is partnering with CMT to deliver this experience with the goal of making roads safer by informing drivers of their phone distractions while behind the wheel. The distracted driving feedback comes from CMT’s smartphone telematics platform that infers distraction from sensor data, user engagement and behavioral science. This feedback provided via the app will help show drivers how to become safer behind the wheel.

“Focus groups have shown us that people want to be safer drivers. The goal of providing distracted driving feedback is to inform drivers on the frequency of this behavior and hopefully reduce phone distractions behind the wheel,” said Nationwide’s Teresa Scharn, vice president of personal lines product development. “Nationwide has taken a strong stance on distracted driving and now we’re able to provide real feedback to drivers through our SmartRide mobile app by partnering with CMT.”

SmartRide is Nationwide’s usage-based insurance program that gives personalized feedback to help drivers make safe driving decisions, earning an instant 10% discount at sign-up and the potential to earn up to a 40% discount the safer they drive. The distracted driving feedback will demonstrate ways for drivers to become safer behind the wheel but will not be a factor used in the discount. CMT analysis of billions of miles traveled by millions of drivers indicates that distracted driving feedback and user engagement can be impactful, with the top 30% of drivers on their platform reducing their phone distraction by 39% after 30 days³.

"Our partnership with Nationwide on SmartRide is a key step on our mission to make roads safer by making drivers better," said Hari Balakrishnan, Co-Founder and CTO of CMT. “Our smartphone telematics platform helps drivers understand and reduce their risky and distracted driving practices.  

Nationwide launched its telematics journey in 2011 with SmartRide, and in 2016 SmartRide added its mobile application option. SmartRide is available in 46 states and D.C. In February of 2019, Nationwide launched SmartMiles^®, a true pay-per-mile auto insurance solution to save low-mileage drivers money. SmartMiles is currently available in 32 states and will continue to expand. Earlier this year, Nationwide CEO Kirt Walker announced the company’s advocacy for all fifty states to adopt hands-free, primary enforcement laws to curb distracted driving. States that have adopted these laws have seen a 15 percent decrease in fatalities. Nationwide is also seeking the adoption of model legislation by NCOIL, the National Council of Insurance Legislators, as part of its efforts.