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Usage-based insurance could encourage better driving behaviour

Researchers at the University of British Columbia (UBC) recently conducted a study on usage-based auto insurance and found that the use of telematics to monitor driver behaviour and to help adjust rates could lead to better drivers overall.

The study, which looked at data from 30,000 drivers, suggested that usage-based insurance (UBI) is expected to be used by 142 million by 2023.

“What we found is that women, compared to men, seem to improve their behaviour more, and younger people, compared to older people, also tend to improve their behaviour more,” said Charles Weinberg, UBC marketing professor.

Usage-based insurance allows drivers to receive immediate feedback on their driving behaviour, giving them opportunities to adjust their driving accordingly.