Telematics, AI, & the Road to a Safer Future
One of the expert speakers at Insurtech Boston '24 was Matt Fiorentino, VP of Marketing of Cambridge Telematics. In his session, he reveals the number of fatalities caused by impaired and distracted driving, what the statistics show and what we can do to ensure the numbers trend downwards.
Over 40,000 road fatalities per year
Over the past four years, we’ve lost over 160,000 people to road fatalities, averaging more than 40,000 deaths per year. To put this into perspective, this is equivalent to about 200 Boeing 737 Max crashes each year, which translates to roughly four crashes per week. Imagine living in a world where we experienced four plane crashes weekly, and life continued as normal.
Two of the main causes of car crashes are distracted driving and impaired driving. According to NHTSA (National Highway Traffic Safety Administration) estimates, there were over 12,400 road fatalities due to distracted driving in 2021. That same year, the NHTSA also estimated over 12,500 fatalities due to impaired driving. Each year, distracted driving and impaired driving result in a similar number of road fatalities.
24% of Americans admit to using Instagram while driving
Part of the problem is the addictive nature of apps. According to a CMT survey, Instagram is the most-used app while driving, with 24% of drivers admitting to using it in the past month. It’s the most-used app while driving for men (22%), women (15%), 18-29-year-olds (26%), and 30-44-year-olds (28%). Three of the top five most-used apps while driving belong to Meta.
4.5% lower distracted driving
Distracted driving has been on the rise in recent years, but this year showed a positive change. Last month, we published our annual report on distracted driving, and we shared some good news. In 2022, drivers in the United States spent an average of 2 minutes and 12 seconds using their phones for every hour they were on the road. In 2023, that number dropped to 2 minutes and 6 seconds. Though a reduction of just six seconds may not seem significant, every little bit counts. This 4.5% decrease has contributed to preventing 55,000 crashes and 250 fatalities.
What is causing distracted driving to decline? There are three reasons:
1. Usage-based insurance programs
Usage-based insurance (UBI) programs make roads safer. When people sign up for these programs and engage with them, their driving safety improves over time. The riskiest drivers tend to show the most significant improvements, reducing their level of distracted driving by over 20% within three months. This reduction leads to a 5.5% decrease in the likelihood of being involved in a car crash that results in injury. We know these programs contribute to safer roads and drivers.
Usage-based insurance programs have gained popularity in recent years. On the CMT platform, which supports UBI programs for 21 of the top 25 auto insurers in the US, enrollments increased by 142% from the first quarter of 2020 to the first quarter of 2023.
2. Changes to State Legislation
State legislators and road safety groups have fought to make hands-free laws a reality in 29 states. CMT found that the four states that introduced handheld bans in 2023 have prevented an estimated 8,200 crashes and 37 fatalities through early March 2024. Hands-free states overall saw 9.5% lower rates of phone distraction in 2023 compared to states with no-texting laws. Road safety officials are watching these state-level figures closely and are drilling deeper into the issue by leveraging street-level driving analytics, identifying areas with elevated driving risk, and measuring the impact of their campaigns and infrastructure solutions.
3. Growing Awareness
In 2023, the media produced over 65,000 articles about smartphone distracted driving, resulting in 3.6 billion impressions, a 31% increase over 2021. Google Trends data suggests that consumer awareness for smartphone distracted driving rose in 2023 as well, a 54% increase in the same time frame. Just by reporting on it, the media is changing the stigma around distracted driving and saving lives.
More work needs to be done
Forty-five percent of UK drivers say their fellow road users take road safety very seriously while only 29% of US drivers feel the same. It should come as no surprise that drivers in the US are more distracted. But what is surprising is how much: US drivers spend 187% more time interacting with their phones than their UK counterparts.
The good news is that we know what works, and everyone in this room—carriers, agents, media, and insurtech providers—we all have a role to play in this. We know we need to get more people onto UBI programs, help pass more hands-free laws, and increase education, awareness and media coverage to reduce distracted driving. We know what works; now, we need to go and do it.
Get more great tips in person at Insurtech Boston ’25 on May 15!