Usage Based Auto Insurance Programs become more popular

Why

Consumers are increasingly more willing to use UBI, according to a series of J.D. Power consumer surveys conducted in March, April and May. Among those who anticipate their driving miles will remain reduced, over half say they are more willing to try UBI. Even after the coronavirus pandemic dissipates, consumers largely expect their auto usage to remain reduced, with only 38% of respondents expecting driving behaviors to return to normal.

Changing Lanes: Has the Era of Usage-Based Auto Insurance Arrived? “There are two main reasons that people are looking at UBI discounts and programs," says Suzanne Brown (pictured right), principal of Suzanne Brown Agency in Houston. “One is the economic concern that's out there. And the second is the significantly reduced driving activity. Both of those go hand in hand and it's making UBI programs a lot more popular. Some people who weren't interested in these programs and discounts definitely are now."