The global automotive usage-based insurance market size is poised to grow by 37.25 million units during 2020-2024, progressing at a CAGR of almost 7% throughout the forecast period, according to the latest report by Technavio. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment. The report also provides the market impact and new opportunities created due to the COVID-19 pandemic. Download a Free Sample of REPORT with COVID-19 Crisis and Recovery Analysis.

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Technavio has announced its latest market research report titled Global Automotive Usage-Based Insurance Market 2020-2024 (Graphic: Business Wire)

The growth in smartphone-enabled programs and their usage will be a significant factor driving the growth of the automotive usage-based insurance market. Automotive OEMs are increasingly collaborating with smartphone and tablet manufacturers to provide in-vehicle products and services. The growing demand for electric vehicle (EVs) has also encouraged the development of applications that allow consumers to connect their smartphones with their cars to check the real-time status of vehicle batteries. These factors coupled with the rising penetration of smartphones have resulted in the development of app-based UBI systems for the automotive industry. Hence, the increasing use of smartphone-enabled programs will fuel the growth of the automotive usage-based insurance market during the forecast period.

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Report Highlights:

  • The major automotive usage-based insurance market growth came from the pay-how-you-drive (PHYD) pricing scheme segment. The premium in the pay-how-you-drive (PHYD) pricing scheme is calculated based on the driving behavior of the driver. Continuous growth in vehicle ownership, an increase in customer demand for vehicles, advancement in technology, and increased availability of data are some

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LOS ANGELES, CA / ACCESSWIRE / October 2, 2020 / Compare-autoinsurance.org ( https://compare-autoinsurance.org ) has launched a new blog post that explains the main advantages of usage-based programs and how they can lower car insurance rates

For more info and free online quotes, please visit https://compare-autoinsurance.org/top-advantages-of-usage-based-insurance

Drivers can lower their car insurance costs by enrolling in a usage-based insurance program. Usually, a small telematics device is installed inside the policyholder’s vehicle. This device will send data about the time of day when the car is driven, braking, acceleration, speed, cornering, and the distance traveled in one day.

Drivers that allow their insurer to monitor their driving habits can receive the following benefits:

  • Get discounts really fast. Compared to the traditional method that took years of driving history to be analyzed in order to get a good driver discount, this method only takes several months of driving history to be analyzed in order to qualify for a discount.
  • Driving less means paying less. If the policyholder changes his driving habits, this will reflect in the paid insurance rates. Policyholders can drive fewer miles in order to qualify for a low-mileage discount.
  • It stimulates people to become better drivers. Knowing that every bad driving habit like how often the driver is hard braking, turns too sharply, or he is speeding is monitored by the insurer, can determine the policyholder to become a better driver.
  • It helps accidents investigation. The telematics device records the moments before an accident happens. Data like the speed and the direction the car was traveling, airbag deployment, and hard braking can help the investigators to find out what happened and who is at fault. Fraudulent claimants are also easier

Are you overpaying for car insurance? If you are a stickler for safe driving habits and do not use your vehicle for a long daily commute, the answer might be yes. Usage-based insurance is a great opportunity to show your insurance company how low of a risk you are. Thanks to new technologies, paying for car insurance by the mile has never been easier – all you need to do is sign up and start driving.



a woman holding a baby: Asian woman sits in the back seat of a car with her infant child in her arms. Her daughter sits next to her, smiling and wearing a floppy straw hat.


© Images By Tang Ming Tung/Getty Images
Asian woman sits in the back seat of a car with her infant child in her arms. Her daughter sits next to her, smiling and wearing a floppy straw hat.

The best usage-based car insurance

Usage-based insurance first appeared in the 1990s as a policy offering from mainstream auto insurers. Drivers have many more options to choose from these days, including a handful of companies that exclusively sell pay-as-you-go car insurance.

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In our search for the best usage-based car insurance, we identified three top carriers. Two are usage-based programs from national auto insurers that primarily sell traditional policies: Nationwide SmartRide and Geico DriveEasy. The third is Root Insurance, a company that was started for the sole purpose of offering usage-based policies.

Nationwide SmartRide

The most impressive aspect of Nationwide SmartRide is how much your rates can go down through the program. Savings start the moment you sign up with an instant 10 percent discount on your existing Nationwide policy. Based on the results of your driving analysis, you could end up with an additional 30 percent discount.

SmartRide is available as either an app or a separate device you install in your vehicle, making it an option for drivers without smartphones. Whichever option you choose, you will have to complete a four- to six-month program