Usage Based Insurance is all about calculating the applicable insurance premium depending on the vehicle owner’s driving habits. It’s essentially the ‘Pay As You Drive’ model, wherein your usage of the vehicle decides the quantum of insurance premium payable.
Usage-based insurance (UBI), also referred to as pay-per-mile, pay-as-you-drive, or pay-as-you-go, is a type of auto insurance that, depending on the specific insurer’s program, can measure how far a vehicle is driven, where it’s driven, and/or how it’s driven.
Many car insurance companies are now offering their customers more control over their auto insurance with usage-based insurance (UBI).