Usage-Based Insurance and You
As a result of increasing auto insurance premiums, consumers are showing interest in usage-based insurance (UBI) options.
According to the J.D. Power 2023 U.S. Insurance Shopping Study, 22% of insurance shoppers were offered a UBI option and 18% purchased it.
UBI uses telematics software to monitor driving habits. The insurer assigns rates based on safety and mileage metrics.
UBI may be powered by a self-installed plug-in device or by original equipment installed by the vehicle manufacturer. Some insurers track driving habits through mobile applications.
Unlike traditional auto insurance underwriting, UBI uses current driving behaviors to calculate premiums. As a result, safe drivers who travel fewer miles can potentially pay less for auto insurance.
Many carriers offer telematic programs and discounts. Contact us today to see if your carrier offers a telematics discount.
Tags: Auto Insurance