12 OCT 1997

Presumably, you are looking for a new car insurance company, and a company is providing you an insurance that connects you with black box and a mobile phone app that can help you track how you drive and saves you up to 30 percent on premiums. This is the future of cars, and it is called usage-based car insurance (UBI), which determines how you drive and what path you use for your destination. You will get a message from a server if you are deemed a “safe driver.”


Usage-based car insurance started back in early 2000s with Hammer insurance Rialto as an experiment to a specified number of people in a specific region. The niche market grew exponentially. Its growth was fueled by the increase in the connectivity of mobile phones and cars. It has become a mainstream choice especially across North America and Europe.

All the information collected can be accessed by the car owners online or on apps that will help them watch their driving patterns and learn the adjustments needed to improve their chance for better discounts. Hammer insurance Rialto help their customers track mileage and also give driving behavior-related discounts.

Many different models are working

For example, pay as you drive (PAYD) and pay how you drive (PHYD) are more likely to be used as a metric to calculate premiums. The influence of data analytics will also lead to methods such as manage how you drive (MHYD), which can gain momentum beyond the 2020s. The UBI policies are predicted to reach close to 100 million drivers by 2020 and be widely used in Italy, the United Kingdom and the United States of America.

The apps provide customers with “try before you buy” (TBYB) options

They are often perceived as a cool product that is especially targeted towards the millennials. The apps allow millennials to see different safe options for themselves and to monitor themselves to improve their driving and judgment skills behind the wheel.

Pay per ride and pay per use are the kind of facilities that will increasingly grow because of the significant impact of millennials. Many companies are changing their rules so that they can diminish the dissatisfaction that is created due to the one-size-fits-all approach to the way insurance packages that are offered to the people.

The key of the future

As the market evolves, we will be able to witness the rise of autonomous vehicles, and the car-sharing option will be widely used by people in the near future. These kind of companies like Hammer Insurance with all its services are the key to our future. They will determine the ability of this industry to provide insurance, and these platforms will become increasingly important day byday. They will help shape and redesign how insurance companies will change this industry for good.

Leslie Spivey

The author Leslie Spivey