Usage Based Insurance (UBI) is a type of vehicle insurance that calculates the insurance premium of a vehicle based on the usage of the vehicle and the driving pattern of the personnel. UBI is a recent innovation by Auto-Insurers where the mileage and driving behaviors are tracked using self-install-able GPS Tracking devices.
FleetRoboTM GPS Tracking devices measure a number of factors that lead to the complete measurement of the driving pattern and usage of a vehicle, this includes, Distance Traveled by the Vehicle, Sudden Accelerations; Harsh Braking; Sudden Steering; Over-speeding, etc.
The amount of data that may be gathered from a vehicle depends on the type of GPS Technology deployed in the vehicle. Based on the data received from the vehicle, the Insurance company then calculates the premium of that vehicle.
- Graphical dashboards for the insurers to review all the parameters at a glance.
- Custom MIS for calculating the insurance premium.
- Mobile applications for the users for self-diagnosis.
- Self-install-able mini GPS Tracking Unit
UBI provides numerous advantages to insurers, consumers and society.
- UBI allows calculation of Insurance premium more precisely and accurately, by linking the Insurance company more closely to actual individual vehicle or fleet performance.
- It helps the insurers in more accurate estimation of accidental damages, by enabling the insurer to analyze the driving pattern of a vehicle during an accident and thereby help in reducing false claims.
- This inturn provides improved consumer satisfaction and retention.
- The Insurance companies can attract new customers by offering them differentiated services and handful amount of discount that provide advantage to consumers and businesses including cost savings, cost control & transparency.
- With the help of UBI, insurance companies are able to retain personnels with good driving habits by offering them compelling discounts.
- UBI allows the insurer to offer Lower claims rates by enabling customers to develop safer driving behavior.
- UBI provides consumers the ability to reduce their insurance premium by keeping a check on their driving habits.
- It increases the affordability for lower income drivers as they only need to pay according the distance traversed and usage of the vehicle.
- The GPS technology enables the users to self-monitor their driving pattern and reduce the risk of higher premiums.
- It also allows the users to determine the health of their vehicle, get reminders for maintenance & services, etc.
- Service Providers can use this data to compare the performances of their drivers and thus, create a healthy competitive environment.
- Reduced numbers of accidents and congestion on road, as everyone will keep a check on their driving pattern.
- People will try to avoid more and more usage of their vehicle since this will help them in reducing their insurance premium, as a result less driving will lead to reduced fuel usage and less pollution.
- This will also encourage the use of public transport.