Connected vehicles are reshaping the insurance industry

Usage-based insurance will be game-changing both for individual drivers and large fleet operators, writes Freddie Holmes

Today, privately-owned cars are left stationary for most of the time, dwelling either at home or the office. With the pandemic leading many to work from home almost exclusively, some cars might now be stationary for days on end. Meanwhile, annual insurance premiums mean drivers are often overpaying in relation to the mileage they drive.

Special report: Connected vehicle software solutions

Usage-based insurance (UBI) is seen as a way to get around the problem. UBI relies on telematics systems that draw data from the vehicle to show how and where it is being driven. This could flag instances of hard braking and acceleration or changes in location and weather, all of which can influence perceived risk. In future, more novel UBI solutions could even adjust their premiums based on an uptick in local crime, or if a driver joins a statistically more dangerous road. It could also go the other way, making premiums fall for safer drivers in safer areas.

UBI will benefit not just drivers but also insurers given it can more accurately assess the level of risk they are taking on. “Insurers that employ advanced telematics systems and

It’s time to log in (or subscribe).

Not a member? Subscribe now and let us help you understand the future of mobility.

Monthly Online Magazine
£195
1 user
12-month subscription (Annual rebill)
Access to Automotive World Magazine, our must-read monthly online publication
Mag + Articles + Special Reports
£495
1 user
12-month subscription (Annual rebill)
Access to Automotive World Magazine plus all articles and more than 40 special reports per year
All Content
Single-User License
£2,250
1 user
12-month subscription (Annual rebill)
Free tickets to Automotive World events
Unlimited online access to all content, including Automotive World magazine, articles, special reports, data and research
All Content
Team License
£3,950
Up to 5 users
12-month subscription (Annual rebill)
Free tickets to Automotive World events
Unlimited online access to all content, including Automotive World magazine, articles, special reports, data and research
All Content
Company-Wide License

Contact us for pricing

Unlimited users
12-month subscription
Free tickets to Automotive World events
Unlimited online access to all content, including Automotive World magazine, articles, special reports, data and research

Welcome back , to continue browsing the site, please click here