Valued at an estimated $46.9 billion in 2024, the usage-based insurance (UBI) market is expected to grow to $70.5 billion by 2030, according to researcher and technology service provider MarketsandMarkets. As adoption grows, UBI could fundamentally change how insurance companies operate.
UBI requires car owners to share their driving data in exchange for more personalized rates. As insurers gather and analyze more information about how people drive, they can adopt advanced underwriting practices, offer new services, and reduce claims losses. For better or worse, those evolutions may affect your auto insurance coverage going forward. Here’s what you need to know.