usage based insurance programs Archives

Usage based insurance programs are growing

December 20, 2012December 20, 2012 Julie Campbell

These changes may soon be altering the entire face of the auto coverage industry. A report has just been released that has indicated that approximately 75 percent of companies in the property casualty industry believe that usage based insurance (UBI) will create a significant shift in the auto coverage from the current situation through 2020. The report said that 70 percent of insurers are already involved in some level of UBI. The report was created by Strategy Meets Action (SMA), which is an insurance advisory firm. It stated that among…

Usage based insurance is changing pricing models

August 10, 2012April 30, 2013

Built-in tracking devices are transforming the way that rates are calculated for drivers. Traditionally, insurers have used a motorist’s age, gender, address, and other demographic information to calculate the premiums an individual would pay for coverage, but usage based insurance is now changing that pricing model to include driving skills and behaviors. These increasingly popular devices and programs are starting to transform the monthly bills. Now, instead of basing rates on risks that are calculated using historical data regarding the group into which an individual driver falls, his or her…