Usage-based insurance analyses your insurance premium reliant on your driving rather than a fixed amount like orthodox car insurance. Distance covered and you’re driving behavior are two vital reasons that decide your vehicle insurance premium. The insurer utilizes information like braking patterns, driving speed, acceleration rate, and whether you utilize the mobile while driving, to estimate insurance premiums. This insurance prizes good driving behavior and allows you to save on premiums if you don’t drive your car regularly.

Telematics Device –

This device is offered by the insurance company that you require to install in your vehicle. It records all the driving data and tracks you’re driving behavior. This device can be fitted professionally and is most dependable. It delivers precise information. These days there are built-in telematics devices in cars.

On-Board Diagnostics (OBD) Sensors -

These are sensors that you can fit by yourself to the OBD port in your car. Such sensors can keep and share real-time driving information.

Plug-In Device -

This device also can be installed by yourself like a pen drive that you can simply plug into your car.

GPS Device -

An advanced GPS device is also utilized to track and share driving data.

Mobile App -

No exterior device or installation is needed. With the aid of a mobile application, the car driver’s mobile phone can be utilized as a telemetric device. The app tracks and delivers the car’s movement. However, this choice is not as dependable as others as far as claims are concerned.
Types of Usage-Based Insurance

There are numerous kinds of usage-based insurance, where the premium is planned liable on different parameters that you opt for.

● Pay As You Drive -

In this kind, the premium is planned on the basis of distance driven. There are slabs of distance that you can opt for as per your utilization.

● Pay How You Drive-

In this kind, the premium is planned on the basis of your driving patterns like acceleration, speed, and braking pattern.