![]() The device or app will track your driving habits for 90 days. When you sign up for the UBI safe-driver program, you agree to use a small telematics device that plugs into a port on your car’s dashboard or download an app on your cellphone. It works similarly to an onboard GPS system in your car, which tracks location data to provide travel guidance. Telematics employs wireless technology to access and transmit data about your driving behavior to the insurance company. With UBI, insurance companies monitor your driving habits and offer discounts if you can prove you are a safe driver. ![]() Telematics forms the backbone for what’s called usage-based insurance (UBI). How can the insurance company tell if you are driving safely? The answer is by using telematics. But is this legit? Isn’t this equivalent to spying? Is sharing your driving data worth it? It all depends on your perspective.įirst, you may be wondering how it all works. ![]() The program name may vary by company, but the idea is essentially the same: If you can demonstrate safe driving habits, you will earn lower auto insurance premiums. These ads aim to entice you to take advantage of driver discounts made possible if you participate. You may have seen auto insurance commercials touting safe-driver programs. ![]()
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