Drivers warming to usage-based insurance

24 Feb 2015

[![Drivers seem to be interested in car insurance that is based on personal usage.](http://buyersguide.carsoup.com/wp-content/uploads/2015/02/Insurance-tips-usage-based.jpg)](http://buyersguide.carsoup.com/wp-content/uploads/2015/02/Insurance-tips-usage-based.jpg)Drivers seem to be interested in car insurance that is based on personal usage.

File this under still another way technology is changing our lives. Drivers these days appear to be getting more comfortable with so-called usage-based insurance, reports the industry trade website Insurance Networking News.

Just what is UBI? According to the National Association of Insurance Commissioners (NAIC), this recent innovation aligns driving behaviors with premium rates for auto insurance. Mileage and driving behaviors are tracked using odometer readings or in-vehicle telecommunication devices (telematics) that are usually self-installed into a special vehicle port.

The basic idea of telematic auto insurance, NAIC says, is that a driver’s behavior is monitored directly while the person drives. These telematics devices measure a number of elements of interest to underwriters: miles driven; time of day; where the vehicle is driven (GPS); rapid acceleration; hard braking; hard cornering; and air bag deployment. The insurance company then assesses the data and charges insurance premiums accordingly.

For more information, visit NAIC’s website.

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