Usage-Based Insurance (UBI)

A type of insurance where premiums are calculated based on actual driving behavior monitored through telematics devices.

Usage-Based Insurance (UBI) tailors fleet insurance premiums based on actual driving behavior, incentivizing safe and efficient operation.

Component of UBI 

  • Telematics Data: Data collected through telematics systems, including mileage, driving times, harsh braking, and acceleration.
  • Driving Behavior Analysis: Software analyzes telematics data to assess risk factors associated with each driver.
  • Pay-How-You-Drive Model: Premiums are adjusted based on individual driver behavior and overall fleet risk profile.
  • Driver Feedback & Training (Optional): Provides insights for improving driving habits and potentially reducing future premiums.


  • A driver with consistent smooth braking and no speeding events qualifies for a lower UBI premium compared to a driver with frequent harsh braking and speeding.
  • UBI data identifies risky driving patterns, prompting driver coaching programs to improve overall fleet safety.

Benefits of UBI 

  • Reduced Insurance Costs: Safe driving practices translate to lower premiums for the fleet.
  • Promotes Safe Driving: Encourages drivers to adopt safer habits to minimize risk and cost.
  • Improved Driver Performance: Data-driven insights help identify areas for improvement and implement targeted driver training programs.
  • Enhanced Risk Management: UBI data helps assess overall fleet risk and implement measures to mitigate potential accidents.
  • Identify High-Risk Drivers: Data can pinpoint drivers who require additional training or coaching to improve safety and potentially lower premiums.

Can potentially reduce insurance costs for fleets with safe and efficient drivers.