What data is collected?

Telematics devices collect many driving behavior data points and the list grows daily. The number and variety of data points available to insurers to optimize pricing models expands as telematics devices evolve. Common data points include:

  • Location

  • Speed

  • Cornering

  • Braking

  • Trip duration

  • Road type

  • Distance

  • Direction

How is the data used?

The collected vehicle data is analyzed to identify driving behaviors that indicate risk. A score can be assigned to signify to an insurer the relative risk of each driver.
  • Night driving

  • Frequent driving

  • Frequent hard breaking

  • Frequent hard acceleration

  • Distracted driving

Benefits of UBI

  • Driver behavior data helps insurers better price risk

  • Lower premiums for safe drivers help insurers attract and retain more profitable customers

  • Better drivers tend to opt-in to UBI policies, helping insurers improve their risk pool

  • Increased pricing transparency can help improve customer loyalty

UBI by the numbers

  • 20% of US households participate in a UBI program

  • Policyholders receive up to a 40% reduction in premiums

  • 10% increase in policyholders’ likelihood of renewing their policy

  • 11% increase in customers’ likelihood of recommending their insurer