What Is Usage-Based Insurance?

Usage-based insurance is a type of car insurance where your premium is based on your driving behavior. It uses telematics, often through a safe driving app or small device, to track driving habits like miles driven, time of day, and braking patterns. Usage-based car insurance can reward safe, responsible driving with lower rates.

Many insurers, including Westfield, offer safe driving incentive programs that provide real-time feedback and the potential for valuable discounts.

How Does Usage-Based Insurance Work?

Unlike traditional car insurance pricing, which relies on factors like your vehicle’s age, your driving record, and your location, UBI is insurance based on driving behavior. When you enroll in a UBI program, your driving is measured through insurance telematics — technology that gathers driving data from a mobile app, plug-in device, or your car’s built-in system. Your driving behavior is then scored over time, with safe habits helping you qualify for safe driving discounts.

Some carriers use a pay-as-you-drive insurance model, where your rate is primarily influenced by how many miles you drive.

What Driving Behaviors Are Measured?

Most UBI programs track a combination of driving habits and mileage to determine your score. Here are a few habits that can help you and other participating drivers maintain a strong driving record in a UBI program:

• Stay off your phone while driving.
• Limit hard braking by slowing gradually.
• Avoid hard acceleration by increasing speed steadily.
• Drive at safe speeds and follow posted limits.
• Take turns and curves at a safe pace.

Our MissionSafe® safe driving app recognizes that some hard braking or acceleration is unavoidable. That’s why your score is calculated based on your trips over time, so the occasional sudden stop won’t have a major impact on your overall rating.

Does Usage-Based Insurance Save You Money?

Usage-based insurance can help drivers lower their insurance costs by aligning premiums with actual driving behavior. Westfield’s MissionSafe program saves participating customers an average of 20%, with some seeing discounts up to 40%. Plus, you receive a one-time 10% discount during the current policy term just for signing up.

Unlike many other safe driver discount programs, which may increase rates if the occasional misstep is detected, MissionSafe only helps you earn potential discounts.

Other Benefits of Usage-Based Insurance

In addition to offering discounts for safe driving behavior, UBI programs often provide a number of other advantages:

• Real-time feedback: Safe driving apps give insights into your habits and highlight opportunities for improvement.
• Rewards and Incentives: Programs encourage better driving while offering tangible benefits like gift cards.
• Teen driver support: Guidance and monitoring give young drivers the tools to build safe habits early.
• Privacy and security: Your driving data is protected and used only for rating and program purposes.

How Does Usage-Based Insurance Help Teenage Drivers?

Getting new drivers on the road safely can be challenging, but usage-based car insurance makes it easier to guide and reward responsible driving. Here’s how:

• Trip feedback: Your safe driving app turns everyday drives into teachable moments with personalized tips.
• Family sharing: Parents can monitor and coach teen drivers and even start friendly competitions.
• Achievements: Teens can earn badges, streaks, milestones, or gift cards for regularly driving safely.

Is Usage-Based Insurance Right for You?

Insurance based on driving habits provides a fair way to help calculate premium while rewarding safe driving habits. Whether you’re new to the road, a parent of a teen, or an experienced driver with a clean record, usage-based insurance can help you meet your safety goals and save on your car insurance.

Connect with an agent to get a usage-based car insurance quote to see how Westfield’s MissionSafe program can potentially save you money.