AAA Study Finds Smartphone Apps Reduce Risky Driving, Lower Insurance Costs

Recent research from the AAA Foundation for Traffic Safety indicates that smartphone apps designed to monitor driving habits can significantly reduce risky behaviors and potentially lower auto insurance premiums. The 24-week study involving over 1,400 participants found improvements such as up to a 13% reduction in speeding, 21% in hard braking, and 25% in rapid acceleration. Feedback and incentives provided through these 'usage-based insurance' (UBI) programs were effective across various demographics, and many participants reported that the potential for financial rewards helped change their driving behavior. Notably, sustained improvements in driving safety continued even after the feedback period ended. These findings underscore the potential of technology to enhance road safety and personalize insurance rates based on actual driving habits. AAA offers its own UBI program, AAADrive™, which allows drivers to tailor their insurance costs based on their performance.