Usage-Based (UBI) policy is where the consumer gives permission to the insurer to monitor his driving behavior through a telematics device, such as a dongle or a smartphone app. Driving factors like miles driven, time of day, location of the vehicle, rapid acceleration, airbag deployment, hard breaking and cornering are captured and transmitted to the insurer through these devices. Insurers can then refine the risk assessment down to actual data of the individual driver and charge premiums that are more in line with the actual exposure of the driver.

As more carriers offer UBI and awareness increases, you will start to see more consumers ask for it. As a TurboRater user, you will be prepared for this increase in demand.