are you an insurance sales agent or are you an actuary? if an agent, how do you know how the costs are calculated other than typing in someone's information and having it spit that out to you? if an actuary, if driving data is available, why would you not use it as additional data point to come up with more accurate costs?

 

No tin foil hat here. I'm aware of the Event Data Recorder in the car and know something of cell phone carrier geolocation capability even without GPS data.

I have a GT/Sports car and enjoy driving it according to its design intent. I'm certain I would get no discount from datalogging my driving, so why would I even bring it up?

The OBD port issues make that moot anyway.

 

OP, I apologize for hijacking your thread
@SouthSider unfortunately my account is not old enough for PMs@Craaaazzy I am not an actuary. However, there is a cost associated with screening risk. Overcoming asymmetric information, adverse selection and moral risk is not free and policy holders do not wish to pay for it. in Ontario we are regulated by FSRA. We are approved to use certain rating factors such as driving experience, claims history and territory to generate rates. However, you and your neighbors driving the same vehicle still have different driving styles. This is where UBI allows us to generate (justify to FSRA) additional discounts to match good driving behaviors. We currently do not use UBI data to increase premiums.
@lizzardo some companies in Ontario offer an enrollment discount when signing up to UBI. For example 10% is guaranteed for 6 months until assessment is complete and a discount of 0% to 25% is generated for the remaining 6 months in the policy term. UBI is offered through an app rather than dongle. Individuals take that 10% in savings and run. On the companies side, we benefit from drivers finally paying attention to their driving style....kinda like the efficiency gauge on BMWs. Driver paying attention to their driving tend to have less accidents.
I find these days insurance is viewed as a product and not a "fund" which is what it really is. Policy holders pool their money together and hope it's enough to pay for all the claims in that year. Once you realize you have a choice of which policy you can buy into, you can seek out a company with good underwriting practices and low loss ratio and enjoy being part of a policy with good drivers who protect future rates from going up.

 

So my rates will not increase, but might decrease, remain the same or be dropped?

 

@SouthSider it depends on your company and how they offer the UBI program.