Usage-Based Car Insurance Quotes

Brief Overview of Usage-Based Car Insurance Quotes

Usage-based insurance (UBI) is an option available to purchase from some car insurance carriers. UBI will track your driving standards and may result in a lower car insurance quote, only if your driving scores well.

Usage-based insurance typically measures your acceleration, hard braking, and speeding, along with mileage and the time of day that you drive - using a plug-in device or a mobile app. You receive a driving score and tips on how to improve your score. So if you are a consistent, careful driver, you should be able to reduce your car insurance quotes.

UBI Tips

Drive Less Often

Try a UBI trial offered by companies like Progressive Insurance to get a feel for this type of insurance. Try and select a period of weeks or months when you know you'll be driving as little as possible instead of a time when you are taking a road trip to Coachella!

Review Feedback

If your User-based program offers feedback on your driving habits through the app, try to use this information to improve your driving as this should help reduce your car insurance cost.

Avoid Distractions

Don’t try and multi-task when you are driving. This is a one-way street to a car accident, so it’s important to avoid anything that can take your attention away from the road ahead - using your phone, reading, or eating.

Night Driving

A common time for road accidents is between 12 am and 4 am on the weekends. If your UBI device or mobile app logs frequent driving during these times, the cost of your car insurance policy could increase.

Is Usage-Based Car Insurance Worth It?

UBI could lower the cost of your car insurance if you tick all the correct boxes. However more than half of the drivers that use UBI devices do not reduce the cost of their insurance premiums. According to a TransUnion survey, car insurance quotes decreased for only 48% of those using a telematics program and only 30% had no change in costs.

So while some car insurance companies could raise your car insurance premiums if you don’t score well during the initial review phase of a UBI program, some drivers did see a reduction in their insurance premiums, so it might be worth trying if you consider yourself to be a careful driver.

Usage-Based v’s Pay Per Mile Insurance

Pay-per-mile insurance is different from Usage-based insurance. Pay-per-mile is a pricing agreement in which part of the premium increases with each mile a policyholder drives. Usage-based insurance is a discount plan that can reduce your rates if you prove that you are a safe driver.

Both programs kind of track your driving however, pay-per-mile uses less technical information. Pay-per-mile reduces rates for infrequent or low-mileage drivers, while usage-based insurance doesn’t always lower your insurance cost for driving less.