The Future Of Car Insurance: Digital, Predictive And Usage-Based
Imagine shopping for your next car insurance and the car company offers an insurance that connects a black box, dongle or a mobile phone app, which tracks how you drive, and saves you up to 30 percent on premiums. This, in essence, is the future of connected car insurance, also called usage-based car insurance (UBI), whereby based on how you drive, when you drive and where you drive, you will receive a competitive quote if you are what the technology deems a ‘safe driver.’
Usage-based car insurance started in the late 2000’s as a niche experimental effort by a select number of insurance companies in select regional markets. Fueled by an increase in the number of connected cars and smartphones, it has now become a mainstream offer by most insurance carriers especially across North America and Europe. Driving information can be accessed online or on apps allowing customers to monitor their driving patterns and make needed adjustments to improve their chances for better discounts. Today, big insurance names offer mileage-based, driving behavior-related discounts, and customers now have the option to choose an insurer before they walk out of a dealership with their new car.