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.
