Background on: Pay-as-you drive auto insurance (telematics)

The topic

Pay-as-you-drive, telematics and usage-based insurance are all terms used for programs that offer drivers the option of having premiums tailored to their individual driving patterns.

The programs give drivers a financial incentive to drive less and, depending on the information monitored, to drive more carefully. The more positively they react to the incentive, the less they pay for their insurance. With commercial programs, the fleet owner benefits through lower premiums.

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