Usage-based insurance (UBI) represents a significant shift from traditional auto insurance models that primarily base rates on demographic factors and driving history. With UBI programs, insurance companies collect real-time data about your driving habits through telematics devices or smartphone apps. This technology tracks various aspects of your driving behavior, including speed, acceleration patterns, braking habits,…

Auto insurance has traditionally been priced based on statistical risk factors like driving history, credit score, age, and location. These factors help insurance companies predict the likelihood of claims, but they don’t directly measure how safely each individual drives. Many consumers end up paying premiums based on group statistics rather than their actual driving habits.…