- Usage-Based Insurance (UBI) is transforming the auto insurance landscape by leveraging telematics, GPS tracking, and real time driving data to offer personalized premiums based on actual driving behavior. This model promotes safer driving habits, improves risk assessment for insurers, and provides cost-saving opportunities for consumers.
- Market growth in North America is driven by the widespread adoption of telematics devices, increasing penetration of connected vehicles, and growing consumer demand for fair and transparent insurance pricing. Rising concerns about reckless driving and accident reduction have further encouraged UBI adoption.
- US is expected to dominate the North America Usage-Based Insurance market, supported by mature automotive and insurance sectors, favorable regulatory frameworks, and strong partnerships between insurers and telematics providers.
- Canada is emerging as a fast-growing UBI market, fueled by insurance innovation, increasing interest in pay-as-you-drive and pay-how-you-drive models, and government support for connected vehicle infrastructure.
- The Pay-How-You-Drive (PHYD) segment holds the largest market share of 65.34%, driven by insurers’ emphasis on behavioral-based pricing and increasing consumer acceptance of sharing driving data for premium discounts and safety feedback.
