A national randomized field experiment testing the impact of simulated usage-based insurance programs on driver safety

Many motor vehicle crashes are due to risky driving behaviors measurable by smartphone telematics applications. These apps are deployed by usage-based insurance (UBI) programs to estimate crash risk and price policies, incentivizing customers to drive safer. A preregistered randomized controlled trial (NCT06101251) tested whether a simulated UBI program improved driver safety, and whether being assigned or choosing focused goals yielded further improvement. Adult drivers (n = 1,449) were recruited nationally with social media advertisements. After a 6-week baseline period, participants were randomly assigned to one of four groups for a 12-week intervention: 1) Observation (control); 2) Standard Feedback (weekly texts about four risky behaviors, $100 incentive); 3) Assigned Goal (weekly texts about algorithmically assigned focus behavior and goal, $100 incentive); 4) Chosen Goal (weekly texts about self-chosen focus behavior and goal, $100 incentive). Post-intervention, participants were monitored for 6 more weeks. The primary outcome was a 0-100 score for overall safety (100 = safest). Standard Feedback (covariate-adjusted difference, 2.0 [95 % CI, 1.2-2.7]; P < 0.001), Assigned Goal (2.7 [95 % CI, 2.0-3.5]; P < 0.001), and Chosen Goal (2.2 [95 % CI, 1.4-3.0]; P < 0.001) had higher safety scores than control during the intervention period and at follow-up. Differences between treatment groups were not significant after adjusting for number of comparisons, Ps > 0.10. Treatment groups had significant relative reductions in speeding (11 %-13 %, depending on group), hard braking (16 %-21 %), and rapid acceleration (16 %-25 %), Ps < 0.01. The kind of feedback and incentives offered by UBI programs can cause sustained improvements in driver safety.