What Is Usage-Based Insurance and Why It Matters
What Is Usage-Based Insurance and Why It Matters
Barbara Smith Usage-based insurance (UBI) tailors premiums based on real-time driving behavior, such as speed, distance, and braking patterns. Unlike traditional models, UBI offers more personalized pricing, rewarding safe drivers with lower rates. For regional insurers, this represents an opportunity to offer localized, data-driven policies, leveraging smartphone apps and embedded vehicle tech. With the growing shift toward mobile-based UBI and regulatory sandboxes, regional carriers can innovate quickly and meet customer demand for flexibility. As usage-based insurance becomes more mainstream, insurers who embrace this model early will stand out in an increasingly competitive market.
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