What is User-Based
Insurance and How Does it Lower My Auto Rates?
User-Based Insurance (UBI)
is a concept where auto insurance consumers allow their insurance company to
monitor their driving behavior to determine auto rates. Typically, insurers utilize a device that
drivers plug into their car or a mobile application that drivers download on
their smart phone. Insurance consumers
often ask for auto insurance
rates to be tailored more specifically to individual driving habits and UBI
makes this possible. The following are a
few FAQs you should know about User-Based Insurance:
- What driving habits are monitored by User-Based Insurance? UBI generally monitors mileage driven, vehicle speed, hard-braking, distracted driving (e.g. driving while texting, talking on the phone or using online applications).
- What benefits do insurance companies get for using User-Based Insurance? Insurers benefit by acquiring more driver data, which helps develop auto insurance rates more accurately. Insurers also benefit from auto driver’s operating vehicles more safely, which decreases the number of auto accidents.
- What benefits do auto insurance consumers get for using User-Based Insurance? Most insurance companies offer a discount to consumers for utilizing UBI, so lower auto insurance rates are a major benefit. Additionally, all auto drivers benefit from UBI from the increased awareness of driving safely, which reduces the number and severity of auto accidents.
If you have
additional questions regarding User-Based Insurance or your auto
insurance rates, please stop by my offices in McKinney, TX or give
me a call at (972) 727-9111.
Stan Polk, CPCU – Agency Owner
6951 Virginia Parkway, Suite 316
McKinney, TX 75071
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I am a Farmers® agent but
my posts are my own and are not statements by or on behalf of Farmers.
