Is Usage-based insurance (UBI) a way to save on car insurance?

Podcast 04

Usage-based insurance (UBI) is a way for auto insurers to garner customer trust. The study indicates that customers with UBI policies report higher satisfaction levels with their insurance companies (89%) compared to those without UBI policies (81%). Here are some key points about UBI from the sources:

• Customer Satisfaction: Customers with UBI policies show greater satisfaction with their insurance companies.

• Familiarity vs. Usage: Although 60% of customers are at least somewhat familiar with UBI, very few actually use it. • Likelihood to Consider: Only 28% of customers say they would consider UBI for their next policy if a discount of at least 5% was offered.

• Age-Related Trends: Younger people are generally more familiar with UBI, while older policyholders are more likely to continue using a UBI policy.

• Road Safety: One of the main benefits of UBI is that it can improve road safety by encouraging safer driving habits. This is a key way insurers can connect with consumers.

• Benefits: UBI can help consumers save money, allow insurers to analyze and personalize risk more efficiently, and contribute to safer roads. • Traffic Issues: Increased adoption of UBI could aid in easing some of Canada’s growing traffic issues.