When motorists have exceptional driving skills (i.e., they drive safely), they may be able to get their auto insurance rates assessed based on how they drive. This kind of auto insurance is called usage-based insurance—some insurance companies offer it, some do not. But, if drivers can get it, they may get lower rates for their coverage.
How UBI works
To get a UBI rate, drivers and their insurance companies can employ certain technologies that measure different aspects of their driving. There are several types of technology that can do this, including:
- GPS,
- vehicle systems (e.g., OnStar),
- smartphone apps provided by the insurance company, and
- windshield tags (connected to a smartphone via Bluetooth and attached to the front or rear windshield).
These technologies measure myriad aspects of a person’s driving habits, including:
- speed and acceleration,
- mileage,
- braking (hard braking in particular),
- hard turning,
- the time of day/night the vehicle is operated, and
- driver phone-use.
In addition to a person’s driving skills, certain criteria like location, vehicle type, credit scores and driving records still may be used to determine UBI rates. Typically, driving skills are measured over a period of time, after which drivers may get a lower rate on their auto premiums.
Where it stands right now
Research from TransUnion finds that 49% of drivers who are offered the option to have their driving skills assessed (to be eligible for lower rates) opt-in. However, some drivers may choose to opt-out if they aren’t comfortable with their driving being tracked.
Additionally, of the drivers who opted to let their insurance companies assess their driving, 64% of them were either “very satisfied” or “extremely satisfied” with the practice.
Give us a call
If you’re interested in a UBI program, let us know. We can help you find out if your auto insurer offers UBI (or if there’s another carrier that offers it), and determine whether you are eligible for UBI assessment and enrollment. Give our office a call today. We look forward to hearing from you!
