usage-based insurance

Usage-based insurance (UBI) is a type of auto insurance that adjusts your premium based on how much and how safely you drive. Using devices like telematics, insurers monitor factors such as distance traveled, speed, braking habits, and time of driving. If you drive less or in a safer manner, you may pay lower premiums. UBI encourages responsible driving and offers personalized rates, making insurance more aligned with individual behavior rather than generic risk assumptions. It benefits cautious drivers and promotes safer roads through data-driven incentives.