{"id":41186,"date":"2023-11-27T15:44:39","date_gmt":"2023-11-27T20:44:39","guid":{"rendered":"https:\/\/www.plymouthrock.com\/?p=41186"},"modified":"2025-02-04T14:50:30","modified_gmt":"2025-02-04T19:50:30","slug":"what-is-ubi-in-insurance","status":"publish","type":"resources","link":"https:\/\/www.plymouthrock.com\/resources\/what-is-ubi-in-insurance","title":{"rendered":"What is UBI in Insurance?"},"content":{"rendered":"\n

UBI programs have grown in popularity for insurance customers in recent years. It\u2019s one of the many ways you can save money on car insurance, but is it worth it? What does UBI mean in insurance anyway? Here\u2019s everything you need to know and how you can use it to save money on your car insurance.<\/p>\n\n\n\n

What is UBI in insurance?<\/h2>\n\n\n\n

UBI stands for usage based insurance. Simply put, it\u2019s an insurance product that rates drivers based on their individual driving habits and car usage. Sometimes, UBI can be known as black box insurance, behavior-based insurance or telematics insurance.<\/p>\n\n\n\n


UBI, or usage based insurance, monitors your driving to personalize your insurance rate.<\/div>\n\n\n\n

UBI programs do this by monitoring your trips, either with a device that plugs into your car or with a mobile app. These relay your driving information back to your insurance company. With this information, the insurance company can offer you a rate or discount that\u2019s wholly unique to you.<\/p>\n\n\n\n

Usage based insurance typically covers the same things that regular car insurance policies cover<\/a>. You purchase the coverage you want and decide on limits and deductibles as usual. Where usage based insurance differs is how your policy is priced.<\/p>\n\n\n\n

Usually, car insurance rates are determined using historical data related to people who may have similar characteristics as you. Usage based insurance instead helps the insurance company determine your rate based on your individual data. This means that your insurance policy is truly personalized to you and your driving habits.<\/p>\n\n\n\n

How does UBI work?<\/h2>\n\n\n\n

When you sign up for a UBI program, you\u2019ll begin by setting up a way to monitor your driving trips. There may be a device you plug into your car\u2019s diagnostic port, or a mobile app for your phone. Sometimes, your driving information can be gathered from your vehicle\u2019s onboard systems.<\/p>\n\n\n\n

If your UBI program is a mobile app, it will most likely use the GPS on your smartphone. Be sure to let this app run in the background, or turn it on before you begin driving. Devices that connect to your car\u2019s diagnostic port will start automatically when you drive.<\/p>\n\n\n\n

While active, a usage based insurance program will assess driving. You\u2019ll be scored based on your driving habits, which may be based on the following:<\/p>\n\n\n\n