What is Usage-Based Insurance (UBI)?
UBI programs use a telematics device or phone app to record driving. Insurers differ on what they score: some price by miles driven (pay-as-you-drive), others by driving behavior (pay-how-you-drive), and many combine both. For fleets, a telematics record of speeding, harsh events and trip history can support a conversation with an insurer about premiums, and a clean record helps in claim disputes. Programs vary by insurer and country, and not every insurer offers one for commercial fleets, so ask before you assume a discount. Traxelio reports driving data you can share with an insurer; it does not set insurance prices.
How it works
- A telematics device or app records miles, speed and harsh events.
- The data is scored by the insurer or shared by the fleet.
- The insurer compares the score with its pricing model.
- Premium or renewal terms reflect the driving record.
- Ongoing data supports claim review.
Key facts
- Prices can reflect actual driving instead of averages
- Fleets can bring trip and driver data to renewal talks
- Trip and speed records help settle claim disputes
- Coaching on flagged events targets what insurers score
