VANCOUVER (NEWS 1130) – Imagine becoming a safer driver and getting a discount on your car insurance. The only catch is you have to install a monitoring device in your vehicle.
Charles Weinberg with UBC’s Sauder School of Business says the concept is called UBI.
“Usage-based-insurance is insurance where you agree to put a monitor in your car that monitors your actual driving behaviour for typically, up to six months.”
“And based on your driving behaviour in those six months, for example if you tend not to speed, if you have few hard brakes, you get a discount on your auto insurance.”
But Weinberg found people who sign up for the UBI often end up becoming safer drivers.
“Some people probably tailgate too much. So then they have to hit the brakes too often. So what we found is that over time, people tend to be able to reduce the number of hard brakes that they make, and that makes them safer drivers.”
He expects more than 140 million people to be using it by 2023.
It’s called Usage-based insurance or UBI.