The traditional model for setting auto insurance premiums has been to base rates on the motorist's driving history, age, gender and even marital status (in some states). Thanks to new technological options, insurance companies and motorists have started to work together to give the insurance companies access to better data on an individual driver's risk level, and give the same driver a sense of greater control over how much he or she will pay in insurance premiums.But does UBI help?This question was at the center of a comprehensive study that found not only that it does help, but that the benefits to both the motorist and the insurer.The study to be published in the January edition of the INFORMS journal Marketing Science is titled "Sensor Data and Behavioral Tracking: Does Usage-Based Auto Insurance Benefit Drivers?," and is authored by Miremad Soleymanian and Charles Weinberg of the University of British Columbia, and Ting Zhu of Purdue University.Click here to read more!
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