Usage-Based Insurance (UBI) defines revolutionary new horizons for insurance companies. It is a new model based on the win-win relationship between the insurance companies and the customers.
While the traditional insurance system works on risk estimation based on historical data, the Usage-Based Insurance (UBI) is an insurance system based on risk measurement made during the actual insurance period. The traditional insurance system is based on a premium calculation system that takes the demographic and historical information such as the value of the vehicle, the age, occupation, gender, history of damage of the driver as a basis. Therefore, the traditional system cannot solve frequent problems such as high-risk premiums for all young drivers who do not have a history of use yet.
Thanks to Usage-Based Insurance (UBI);
A telematic unit which will be installed in a vehicle directly measures how much and how the driver uses the vehicle during the relevant insurance period to calculate the actual risk and allows the creation of the actual risk premium accordingly.
Driver usage risks are determined by taking into account many factors such as speed limit exceeding, sudden starting, sudden braking, maneuvering with high speed, day and night usage rate and rate of usage in busy city traffic or intercity areas. By this means, it is expected that there will be a significant reduction in the cost of automobile insurance of good drivers.