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Usage-Based Insurance: As Easy As Plugging In a USB Key

September 14, 2015

This video shows how easy it is to install a UBI (Usage Based Insurance) device in your vehicle. It’s just as simple as plugging in a USB key or charging your phone.  

How To Install A UBI Device

This video from Buckley Insurance shows how easy it is to install telematics in your vehicle. Simply plug the UBI device into your car’s On-Board Diagnostics (OBD) port usually located beneath your dashboard near the hood release button and you’re good to go. This is actually the same port your mechanic uses to run diagnostics on your vehicle.

UBI Is Becoming More Readily Available

An increasing number of Canadian insurance providers are offering drivers the opportunity to get deep discounts on their auto insurance just for installing a UBI device in their vehicle.

UBI devices, also known as telematics, monitor a number of data factors depending upon the insurance provider. Some examples of the data collected includes a driver’s hard acceleration, hard braking, time of day they drive, speed and distance traveled . Most insurance companies collect just three data points to determine the driving behaviour of an insured driver.

The data is then used to determine how eligible the driver is for an auto insurance discount. Most of these programs offer immediate savings of 5 or 10 per cent just for installing the device, with the opportunity to earn additional discounts of up to 30 per cent (amount varies per insurance company) upon renewal.

Related Read: Usage-Based Insurance: What It Is, How It Works

Top 3 Misconceptions About UBI

We often hear from consumers who are concerned that installing a UBI device in their vehicle could backfire on them. We clear up three common misconceptions here:

1)  My rates will go up! Nope, data collected from UBI devices cannot be used against you and will not increase your auto insurance rates. Instead, the data is only used to monitor your eligibility for discounts.

2)  My personal driving information could be stolen or used against me! Insurance companies and Brokers are committed to protect your privacy and to ensure that your personal information is safeguarded properly. They use strict security measures when storing, or destroying your personal data in order to prevent unauthorized access, collection, use, disclosure, copying , modification , and disposal of your information.

The data collected cannot be used to deny a claim, cancel or refuse to renew your insurance policy, or increase your rates. Usage based insurance is regulated by FSCO (Financial Services Commission of Ontario) and information collected cannot be used to process or deny claims unless otherwise required by law (subpoena , police investigation, etc.).

3)  If I make a sudden move, it could revoke my discount. Telematics is based on regular driving behavior and frequency of events. Insurance companies know even the best drivers have to slam on the brakes occasionally, so a driver’s discount is based on their overall driving performance.

Do you have a question about UBI? Ask us in the comments below and we’ll do our best to answer it for you.