Telematics data on how and how often a vehicle is tested shows that riskier drivers are underpriced when buying car insurance . Usage - based insurance ( UBI ) company Progressive Insurance said that telematics data has improved the accuracy of its risk rating of motorists compared to traditional methods . But UBI data is usually only collected after an onboard diagnostics sensor or app is installed , a timely process which can be a trade - off to customers . Instead , many insurers are looking to collect quantitative data - such as location - based data on a smartphone - in order to offer quotes without needing to fit an in - car device .
Telematics data on how and how often a vehicle is driven shows that riskier drivers are underpriced when buying car insurance. Usage-based insurance (UBI) company Progressive Insurance said that telematics data has improved the accuracy of its risk rating of motorists compared to traditional methods. But UBI data is usually only acquired after an onboard diagnostics sensor or app is installed, a timely process which can be a turn-off to customers. Instead, many insurers are looking to monitise existing data - such as location-based data on a smartphone - in order to offer quotes without having to fit an in-car device.