Usage-Based Insurance (UBI)

Usage-Based Insurance (UBI) is a way to price insurance. With UBI, how you drive affects your premium. The more safely you drive, the less you pay.

UBI is a way to price insurance where how you drive affects your premium. Some rating factors include:
  • Mileage
  • Location (e.g., you drive through many dangerous intersections)
  • Speeding
  • Braking (e.g., you follow other cars too closely)
  • Cornering
  • Night Driving
  • Distracted Driving (e.g., you text and drive)
Some of the parameters taken into effect are
  • Harsh Braking
  • Sudden Acceleration
  • Total K.M
  • Daily K.M
  • Over Speed
  • Zig-Zag Driving
  • Accidents Impact Alert
  • Service Dues
  • More of any of these factors is riskier. More risk equals higher premiums. With traditional insurance, insurers offer a fixed price on demographic and historical factors.
  • With UBI, they offer personal pricing based on current individual behavior. As a result, UBI captures individual risk. Pricing is fairer and more profitable. UBI also helps drivers lower their premiums by driving more safely.