The auto insurance business model has not changed in decades, despite great technical advancements that could make auto insurance much fairer and less costly for customers. This forum is intended for customers to vent and provide suggestions and feedback for a policy designed from the ground up for you, the customer.
What is usage based insurance?
UBI or pay-as-you-drive is simply billing a insurance customer for coverage based in large part on how much they drive. Its a simple concept that can be applied by using internet-based mileage reporting and a telematic device. The device can be programed for how much or how little data is collected, depending on who is doing the driving. And the customer decides what data is collected, the minimum being distance driven.
Yes, that is correct. UBI, or usage-based insurance, is a type of car insurance that charges customers based on their driving habits, such as how much they drive, how fast they drive, and how well they drive. This information can be collected using a telematic device, which is installed in the car and can track various data points about the vehicle's usage. Customers have the option to choose how much data is collected, and they can also view their driving habits and adjust their coverage accordingly. This type of insurance is becoming increasingly popular as it allows customers to pay only for the coverage they need, rather than a fixed rate.