Usage-Based Car Insurance is one of the most prominent innovations in Auto Insurance. This approach uses real-world driving data to create more accurate underwriting models and personalized pricing.

By measuring a customer's actual driving behavior, the need for proxy details like age, gender, and credit score decreases when assessing risk. This allows insurers to offer fully personalized pricing based on how, when, and how much a customer drives their car.

While the first wave of UBI programs involved the use of onboard units (OBUs), which were plugged into a car's analytics port to collect data, today almost every large carrier relies on technology that uses the customer’s phone as the sensor.

In this article, we give an overview about the usage-based car insurance landscape and showcase three inspiring prevention offerings from the auto insurance industry.