What is Usage-based Insurance (UBI)?

Several major insurance companies now offer usage-based insurance (UBI) policies. These policies use data collected directly from customers vehicles to help determine their premium. The great thing about UBI policies is that they aim to reward safe drivers, and so in many cases, you may receive an upfront discount for taking out a UBI policy. This is because the data allows the insurance company to price their insurance based on how (and when) the you actually drive (Pay-How-You-Drive) and/or miles driven (Pay-As-You-Drive).