Telematics and Trust: How Independent Agents Can Navigate Data, Privacy and Engagement

• June 9, 2026

By Jared Stuckey

Telematics for personal auto insurance customers promises accurate pricing, safer roads and personalized policies. Yet, adoption still lags, with one issue straining conversations between agents and clients. It isn’t a technology or usability issue. It’s a trust issue, rooted in a lack of understanding.

Despite growing availability and awareness, many consumers remain uncertain about how telematics works and what it means for their data. In fact, only 28% of policyholders are even aware of their insurer’s telematics program, according to a Consumer Reports survey. Of those, just 31% actively use it, while others have either opted out or abandoned it.

This is where independent agents play a critical role. Sitting at the intersection of customer skepticism and innovation, agents can contextualize telematics products and, when necessary, challenge misconceptions.

Addressing Privacy Concerns for Policyholders

Consumers are more aware of their data than ever before, making them more protective of how it is used. Nearly 70% of drivers report concerns about how their personal data is collected and applied through telematics programs, according to an AutoInsurance.com survey.

At the heart of this hesitation is a fundamental misunderstanding about what telematics does— and what it doesn’t. Clients often fear how their data will be used and if it is being tracked, worrying that they are being personally monitored. In reality, telematics is designed to evaluate driving behavior, not track individuals. The data collected focuses on factors like speed, braking and mileage to better assess risk and, in many cases, reward safer habits.

Addressing these concerns head-on is how agents build credibility. That means being clear about what data is collected, how it’s used and that participation is voluntary. It also means reinforcing that telematics is about transparency and alignment between how people drive and how they’re priced, not surveillance.

When framed correctly, telematics becomes a straightforward value exchange. Drivers share limited behavioral data in return for personalized insights, potential savings and a more accurate reflection of their risk.

When Is Telematics the Right Option?

Telematics data has become one of the most valuable engagement tools an independent agent can leverage. With most insurance companies now offering usage-based programs, the opportunity for agents is application, not availability.  

The most effective agents know when to introduce it. For clients who believe they’re safer-than-average drivers, telematics provides a tangible way to validate that confidence and be rewarded for safe driving behavior. In competitive quoting environments, it can also serve as a differentiator, offering a more personalized alternative to standard pricing models. And for households less focused on discounts, telematics can be positioned as part of a broader rewards ecosystem, delivering ongoing value beyond the policy itself.

Telematics, in these scenarios, shifts the dynamic by giving clients a sense of control over their driving habits. That sense of control builds confidence. And while premium adjustments may come later, some telematics offerings provide more immediate rewards—whether through gift cards, fuel savings or other incentives—that create early, tangible benefits that reinforce participation and satisfaction.

However, some clients may not be ready for telematics. Recognizing that is just as important as knowing when to recommend it.

For some, privacy concerns remain a barrier. In an environment where skepticism around data usage extends far beyond insurance, pushing telematics too aggressively can erode faith rather than build it.

There are also drivers who may not benefit from the model itself. High-risk drivers who are resistant to feedback, for example, are unlikely to engage in ways that improve outcomes, making telematics a poor fit for both the client and the agent.

On the opposite end of the spectrum are drivers who believe they are better than they are. The majority of drivers believe they are more skilled behind the wheel than the average driver, with 74% of Americans rating their driving as 7 or higher out of 10, according to LendingTree. Telematics serves as an intervention by testing that overall assumption.

Telematics opens the door to meaningful conversation and engagement, shifting the conversation from opinion to measurable behavior. Here, agents can guide clients toward safer habits and more informed decisions, particularly when paired with rewards-based programs that encourage improvement over time.

As vehicle technology continues to evolve, telematics will only become more embedded in the insurance experience. Data will increase in volume and speed, and insights will be more predictive than ever.

But more data does not automatically lead to clarity. Independent agents are essential to ensuring that this innovation doesn’t erode understanding and transparency about the data collected and how it’s used.

Jared Stuckey is managing director, underwriting and product management, Plymouth Rock Assurance.