"Usage-Based Insurance and How It Works Usage-based insurance, often called UBI or telematics insurance, leverages driving data to adjust premiums based on how, when, and how much a vehicle is driven. The National Association of Insurance Commissioners (NAIC) explains that UBI uses devices or smartphone apps to monitor key metrics such as miles driven, time of day, braking behavior, and acceleration."
"Monitoring Mileage: Driving fewer miles generally equates to a lower risk of filing a claim. Behavior Tracking: Metrics like hard braking, rapid acceleration, late-night driving, and high-speed driving often indicate increased risk and may affect the premium. Data Consent and Technology: Drivers must typically opt in to participate; the specifics of data collection vary by insurer and the technology used."
"If a driver's patterns have shifted, there may be a chance to benefit from updated usage-based insurance (UBI). Consider these common scenarios. A driver's job moves to remote work, or they now commute less frequently. The vehicle is used only for errands or leisure rather than daily commuting. A person switches to car sharing, ride hailing, or alternative transport for part of the year."
Usage-based insurance (UBI) adjusts premiums using driving data gathered via devices or smartphone apps that track miles, time of day, braking, acceleration, and other behaviors. Driving fewer miles typically reduces the likelihood of filing a claim and can lower risk assessments. Risky behaviors—hard braking, rapid acceleration, late-night driving, and high speeds—can increase premiums. Participation usually requires driver opt-in and varies by insurer and technology. Shifts to remote work, limited use for errands, car sharing, or safer, low-risk driving patterns can create opportunities to reduce insurance costs through UBI alignment of price with actual risk.
Read at Aol
Unable to calculate read time
Collection
[
|
...
]