LexisNexis Study: ADAS, Connectivity Grows on Consumers
Dec.20, 2017—A new telematics study by LexisNexis Risk Solutions found that most car buyers don’t seek out advanced safety and connectivity features in new cars, but 76 percent of connected car owners are pleased when they discover the benefits of having and using them, making safety a motivation for using them.
As consumer interest grows and vehicles become more complex, fixed operations departments are going to play a huge role in educating customers on ADAS technology, Kaleb Silver noted in a recent Fixed Ops Business interview (for an upcoming story).
Silver, senior product manager for Hunter Engineering, says the growth of ADAS technologies will provide a major shake-up for the automotive aftermarket, and have a major impact on services in fixed operations departments Not only will they need to be able to explain ADAS to customers, but technicians must also understand how to repair the ever-changing technology within vehicles.
The study revealed that only 15 percent of consumers seek out ADAS (advanced driver-assist systems) and only 19 percent seek out connected car features when purchasing a new vehicle, concluding that a majority of the car-buying population have the features because their cars were factory equipped with them.
Seventy-six percent of ADAS car owners and 65 percent of connected car owners warmed up to ADAS and connected cars after personally experiencing the features in their car.
"The study revealed that the more engaged consumers are with ADAS and connectivity, the more favorable their opinions of UBI (user-based insurance). Working together, insurers can leverage this attitude shift to drive UBI adoption while automakers can use the information to develop more valuable products and services that their customers want," says Pavan Mathew, director of OEM at LexisNexis Risk Solutions.
The key items that would motivate drivers to shop specifically for ADAS and connectivity have been identified as safety, customization and more.
Privacy matters in regards to ADAS and connectivity are concerns amongst respondents, citing that 7 in 10 respondents cite personal privacy concerns as the main reason that are less interested in ADAS, even if it enable UBI.
The study also found that consumers have positive opinion on UBI. The correlations that ADAS and connected car features have to UBI elude to safer driving results and subsequent lower insurance rates, which could help expedite the adoption of UBI.
"This unfolding consumer dynamic presents a unique opportunity for automakers to work with insurers to design services around the cars of the future," says Mathew. "Sharing telematics data helps to strengthen the partnership between automakers and insurers and enables the delivery of valuable, customer-friendly features that help their shared customers be safer drivers, while also opening the door for new business opportunities."