Usage Based Insurance Helps New Drivers Avoid 40% of Crashes

There’s some interesting new research out from UK-based auto insurer, ingenie. Their Young Driver’s Report revealed that 40 percent of new driver crashes could be avoided with wider adoption of “blackbox” or usage based insurance.

While the infographic below fully illustrates the company’s findings, here are a few highlights:

One in five young drivers crash within their first six months on the road.
More than 90% of those using usage based insurance, engage with driving behavior feedback and check their feedback 14 times a month, on average.
Young drivers who share driving feedback with their parents or guardians are 28% less likely to crash than those who don’t.
Drivers with higher driving scores are less likely to have serious crashes than those with lower scores.
With ingenie’s usage based insurance program, one in eight drivers crash within their first six months on the road (compared to the usual one in five).

It makes sense that coaching teen drivers should improve their safety and ability to avoid accidents, and now ingenie has the numbers to prove it! In addition, we know that young drivers are digitally engaged, and therefore highly likely to embrace smartphone UBI.

American auto insurers – now is the time to take action. If you haven’t already done so, read this article on how to feed the usage based insurance elephant.

Wondering how to accelerate auto insurance profit potential?

Many auto insurers still think that usage based insurance programs have to be bogged down by hardware, inventory and seven-figure budgets. If you fall into this category, don’t wait another minute to download the Driveway Fact Sheet. Whatever you do, DO NOT sign a usage based insurance contract until you’re apprised of the newest technology available. Complete the form to the right to get the information you need, before it’s too late!


This crypto robot’s computer algorithm was programmed in such a way as to successfully search for and find profitable crypto exchange mining opportunities. It then executes financially fruitful operations and all of the earned sums go into the trading account of the user. The Bitcoin Trader review states this was possible only because of the efficiency of its underlying principle or so-called blockchain and its immense interest in the financial trading sector.  Moreover, the benefits of using blockchain can be understood by studying its impact on the major area of trade finance. 


Payment is certain and is made to sellers by means of automated methods:  

  • Such a credit or LC payment method can surely tackle the business risks associated via bank facilitation especially related to trade flow and its settlement scheme. It is definite that the trade value can be seriously limited by the financial institutions for the high costs, system complexities, and delays in the contractual period.  


  • Since the letters of credit or LC is determined based on trade documents and never on the quality or delivery of goods, the legal phrases linked with the LC makes the banks to take appropriate determination while interpreting them. Thus, any kind of errors with requirement interpretations or terminology lead to fights between those respective teams and the traded goods are left unwanted at the delivery location. 


  • Another condition of concern is when the payments get delayed when data mismatches occur between the LC contract and its underlying trade files, or which need an acceptance sign form the buyer. Problems can also arise if any kind of corrections is made with the concerned LC contact amendments within a short period before its expiration period. 


All these difficulties are easily mitigated including the risk of denied or delayed payments by correctly modeling the LC contracts as naturally executing types and is made to act on blockchain technology. Now you can see the advantageous working processes of automated verification with the concerned contract’s terms and conditions thereby ensuring the timely payment to sellers preventing any kind of disputes arising due to differences in payment contracts. 


One of the more peculiar things about the Bitcoin trading software is that it does not focus solely on offering investment services that are suitable just for beginners but allows one to choose whether he or she prefers to trade on manual or auto-pilot mode. 



UBI is no longer an interesting experiment. In fact, it’s the key to winning … but only if you do it the SMART way.

The Unbanked – a Good Fit for Usage Based Insurance?

It’s easy to assume that pretty much everyone has a bank account. After all, it kind of boggles the mind, imagining what it would be like to get by without one.

Still, 10 percent of America is “unbanked” meaning that they are individuals who don’t use banks at all. In addition, another 17 percent are considered underbanked, which means, according to PBS, that “they use a bank account in addition to an alternative financial service like payday lenders or payroll cards.”

A marginal slice of the population? Not really: we’re talking 27% of the nation.

To make things more interesting, those un- and underbanked individuals are smartphone users.

Among the unbanked, 70 percent use smartphones
Among the underbanked, 40 percent use smartphones

Occasionally these bank-averse individuals do open an account, and when they do, statistics show they have an overwhelming preference for mobile banking. That’s true among regardless of income level. And while later they may choose to close the bank account, the phone remains an important fixture in their lives. Bank accounts may come and go, but smartphones are forever.

Does usage based insurance appeal to the unbanked?

If you’ve never opened a bank account, you probably don’t have a credit score. And when you don’t have a credit score, it’s tough to get car insurance. Some insurers may shut the door on you entirely. Others may require you to pay higher premiums. Here’s where UBI could present an interesting solution.

UBI is a Pay How You drive and Pay As you drive car insurance where you can also pay the premium depending on the distance you drive. Unlike, traditional insurance where rewards were given on the safe drive and no claims. Here you may the premium depending amount you drive. Click on Bitcoin Code to know more about UBI.

Anyone who’s already using a personal device on a daily basis is probably willing to consider getting auto insurance via a smartphone app. The un- and underbanked demographic, in particular, is even more likely, given their preference for mobile banking.

Usage based insurance eliminates the need for insurers to factor in a driver’s credit score when setting their rates. By basing the cost of insurance on a driver’s behavior, usage based insurance sidesteps the need for credit data.

This means that providers who offer UBI-based insurance without requiring credit data have a competitive advantage when appealing to un- and underbanked customers, because they can offer them more competitive rates. That’s a significant advantage as we’re talking about 27 percent of the population.

This is just one more way usage based insurance could transform the face of car insurance. Click here to see how usage based insurance could revolutionize your approach to insurance.

10 reasons to UNPLUG and unburden UBI

Until now, UBI programs have been burdened by costly OBD devices, complex rollouts and seven-figure budgets. Add that to the fact that consumers don’t like crawling under their dashes and going to their mechanics for OBD electrical system interference, and it’s easy to see why the traditional Usage Based Insurance formula needs some tweaking.

Apparently, the idea of this Forex software was of Lars who allegedly developed a Forex system with a 75% success rate. His brother saw the flaws in the outdated code and applied his very own ‘blazing fast math algorithm’ which was designed to minimize Boolean functions. Their combined efforts are said to have turned the system into a self-described ‘unstoppable beast’ capable of earning more than just satisfying daily profits to its members. 


The Blazing Trader review describes its intimate dependence on the blockchain technology which is its underlying working principle. In fact, this technology provides the complete assurance in terms of timely delivery and payment to its traders or buyers through the process of the trade asset tokenization. 

  • A buyer should be able to transparently view all the present and possible status of the in-transit shipment to obtain the timely indication of all possible delays and damages that negatively affect the fulfillment of downstream obligations.  


Mostly, the insight is often lacked into route delays and delivery damages occurring due to weather conditions, customs holding or congestion in certain areas. This further limit the foreseeing capacity and there exists no way to tackle the associated business risk. 


  • There are also chances of the trade documents moving separately from the good flows and there seems no interconnection between the two. This creates situations that these traded goods can either be claimed by the customers or can hold to it anymore. Further, this condition prevails until the physical documents or the title is attained back.  


Moreover, there can also be chances of mitigating or manipulating the documents that can lead to misleading in the transport chain and further resulting in the fragmented interactions between its stakeholders and so. There can be vulnerabilities and variations within the country’s regulation status for trading procedures and overall it can lack the essence of standards and security. Such a condition can increase the risk of fraud documentation for the trading parties. 

By employing blockchain, the traded asset can be digitized through crypto-tokens and tagged with the ownership of the bearer and avoiding all kind of confusions that otherwise arise. 

First of all, we think that the complicated and complex method implemented into this system’s functionality is fake and unreal as the only purpose of the two men obviously is to make people believe the software is something amazing and unheard of. Secondly, there is nothing to prove that this trading algorithm really works properly. 

Fortunately, Driveway offers a simpler, far superior mobile alternative.

Download our free report now to discover:

Underlying issues with the OBD device and the CAN-bus it plugs into
How OBD and Mobile UBI stack up in 10 key areas
3 early mobile challenges and how Driveway overcomes them

Don’t wait another moment to complete the form to the right. This information could save your UBI program launch hundreds of thousands of dollars!

How does Driveway power usage based insurance?

Driveway is a robust, smartphone-deployed, cloud-based technology that provides auto insurers with comprehensive insured driving data for better pricing intelligence – maximizing the opportunity for lower loss ratios and higher profits. While the technology sets new performance standards in the Usage Based Insurance arena, affordability, scalability and ease of rollout are the head-turning features that position you for cost-effective speed to market. Ask us how we can deliver a custom solution for your company.

Get acquainted with Driveway – the smartphone UBI leader

Based in the Silicon Valley, Driveway Software, Inc., provides smartphone-based telematics solutions for the usage-based insurance industry. We put insurance carriers in the UBI driver’s seat by delivering a turnkey, end-to-end, smartphone UBI platform that leverages mobile and cloud technologies.

The blockchain technology which the Tesler App effectively adopted had a wide application in future progress even though they had to face critical challenges in the initial process like collaborating and managing the operational complexity of the industry-wide trading network. This distributed ledger has a variety of applications that require careful strategic considerations and design decisions for production deployment. 

The Driveway smartphone UBI solution was developed with both the insurer and consumer in mind. Consumers are willing, now more than ever, to let insurers monitor their driving habits in exchange for premium discounts. Most importantly, our philosophy and charter is to deliver UBI within a cost-effective framework that is easy to deploy, scale and manage.

The Driveway team brings some of the best and brightest minds in the industry together. Our technology is now six years in its development lifecycle, designed by a top tier product team with solid experience in UBI, telematics and consumer focused user interfaces (UX). Test drive our smartphone UBI solution. You’ll be glad you did!

Meet Driveway co-founders, Jake Diner and Igor Katsman
Jake Diner

Jake Diner is the CEO of Driveway Software. Jake’s charter is to drive the overall company strategy and direction which includes business, technical and sales operations. Jake is highly skilled and experienced in software development, business development, strategic partnerships and project management.

Prior to Driveway Software, Jake had 11 years of experience as a global product manager and a product engineering manager for two large international companies.

Jake holds a Bachelor of Science degree in computer engineering from Michigan State University in East Lansing, MI where he also starred on the university’s track and field team in the pole vault competition.
Igor Katsman

Igor Katsman is the CTO of Driveway Software. Igor’s primary focus is on the development and refinement of Driveway’s smartphone UBI platform. He is responsible for hiring top tier technical talent, establishing multiple strategic partnerships, and building ongoing client relationships.

Prior to Driveway, Igor worked for more than 20 years as a senior executive with global, middle market and start-up firms.

Igor has authored 16 patents and scientific publications. Igor earned his Master Degree in Computer Sciences from the Technion University in Haifa Israel and holds an Executive MBA from the Kellogg School of Management at Northwestern University in Chicago.

How the Driveway UBI smartphone app works for drivers

What do insured drivers want? Affordable rates, an insurance partner they can trust and help with avoiding accidents. In the past, you might have been challenged to deliver all three. Not anymore. Yes – you can give your auto insurance customers ALL these advantages and more with the Driveway UBI smartphone app.

Affordable rates. The whole point of usage based insurance should be to teach policyholders to become better drivers and then reward them with lower rates when their driving improves. Finally with Driveway, you can do just that. Don’t let your best drivers be cannibalized by your competitors with UBI programs.

Trusted insurance partner. With the Driveway UBI smartphone app, your policyholders know what you’re measuring. Plus, they receive immediate performance feedback in a fun, non-threatening format. In an age when consumers demand transparency, don’t let a “black box” create a serious trust issue.

Help with avoiding accidents. Drivers don’t want to hassle with accidents and claims – and they surely don’t want to place loved ones at risk. Now, you can help them avoid all that, and save money too – all while improving your own profitability.

Usage Based Insurance: The 4 Groups Who May Benefit Most

Lately we’ve been talking a lot about what consumers think of usage based insurance. We’ve talked about how they feel about it and whether or not they’re interested (they are). But who might benefit? That’s a different question.

It’s one thing to gather data on consumer opinion; it’s a slightly different thing to observe which customer groups stand to gain palpable benefits from making the switch to Pay How You Drive (PHYD) insurance.

Why does this matter? Because with this information, auto insurers can reach out to certain customer segments confidently with news of tangible benefits they may not know about. That’s value added. Which spells customer retention. Customers love to be educated about things that will make their lives easier and less costly.

Here’s where to start:

1. Millennials

Statistics show that younger drivers are more likely to get into a wreck; therefore their premiums are usually higher. However, not all young drivers are deserving of their “risky” status.

How to tell them: Inform your youngest customers that under a traditional plan, their risk profile is determined by the behavior of others. Millennials, as a demographic, do not appreciate being lumped into a group and judged as such. They believe strongly in their uniqueness, and want to be treated as individuals.

PHYD insurance does just that. If your millennial customers can demonstrate they really are different by beating the statistics and driving safely, they can pay a lot less.

PHYD is a flexible insurance where the young drivers can pay insurance depending on how they drive. It is based on how you accelerate your car or how you turn it around. The driven is monitored via the telematics device which gathers all the information regarding the drive, depending on which premium is to be given. Click on Ethereum Code to know more about this. 

2. Low-mileage drivers

The more you drive, the greater your risk of collision. It’s a numbers game, right? But conventional policies often don’t price for all the possible mileage variances.

How to tell them: Explain that low-mileage drivers are much less likely to get in wrecks than high-mileage drivers. So it only makes sense that they should pay proportionally lower rates, and with usage based insurance that could be possible. Usage based insurance calculates your premium based on a variety of factors which include how many miles you actually drive. If your risk is lower because you drive less, usage based insurance might allow you to pay less, too.

3. Those who avoid night driving and rush hour

Statistically, those who drive between 5 and 7 p.m. and/or between midnight and 4 a.m. are more at risk of an accident than those who drive during other times of day. Traditional auto insurance underwriting lumps everyone together, assuming we all drive during high risk times.

How to tell them: This audience may include those who work from home offices or who have young children. Appeal to these types of customers by explaining that if they avoid driving during high risk times, they may receive a favorable driving score via usage based insurance, and that may result in lower insurance rates over time.

4. Safe drivers

Want to know something funny? Almost everyone behind the wheel believes they’re an above-average driver. It’s called illusory superiority: “Drivers consistently rate themselves as better than average — even when a test of their hazard perception reveals them to be below par,” according to Mark Horswill, a psychologist at the University of Queensland in Australia.

That said, drivers who really can deliver on their own safe driving self-confidence stand to gain a great deal from usage based insurance.

What to tell them: Offer your customers a safe driver discount with PHYD insurance. Let them know that if their driving is good, their premiums will go down periodically.

In addition to staying within the speed limit, safe driving habits include avoiding sharp turns, hard braking and aggressive acceleration events to name a few. Customers who practice those behaviors – or who believe they could, if they put their mind to it – will probably be happy to self-select and request the switch to usage based insurance.

Ready to empower your policyholders?

Tell these four customer segments how usage based insurance could be of benefit. Of course, there are many types of usage based insurance programs and details vary by state. Learn more about how UBI works for drivers here.

Insurance Telematics Update 2014 – A Shift in Smartphone UBI Thinking

For those of you who weren’t able to participate, Insurance Telematics Update 2014 offered a spectacular opportunity to network and get the latest usage based insurance industry developments. Held in Chicago on September 3-4, the event delivered a glimpse into the future of auto insurance.

The tone this year was different than that of 2013. While last year, smartphone UBI was something interesting to consider, this year, it had a strong foothold in the strategies of most insurance executives. Why the change?

Perhaps these executives are following the leadership of Progressive and Allstate – pioneering auto insurers that have already announced intent and/or projects using smartphone telematics.
Possibly, it’s that usage based insurance feels much more accessible to auto insurers of all sizes now that Progressive has announced partnership with a third party provider, sharply veering from their history of using only proprietary technology.
Maybe, changing perceptions can be attributed to the evolution of smartphone UBI and the fact that several reputable companies (Deloitte, Agero, Cognizant) have improved smartphone UBI apps to enhance the consumer experience. Many second and third generation smartphone apps have already eliminated battery drain and the need for start/stop buttons. And the most evolved are able to merge data collected in the car with power of cloud analytics for more accurate event interpretation.
Most importantly, many insurers are investing great thought into how to use a smartphone telematics platform to revolutionize the insurance business model, connect with policyholders on a daily basis, coach them to improve driving behavior and interact positively and proactively. In a word: They crave customer-centricity and suspect that mobile telematics can take them there at the price they can afford and a timeline they can fathom. Insurers want to offer compelling driver portals, driver coaching and tips, gamification, social sharing, performance benchmarking, weather and traffic alerts, and even roadside assistance capabilities – all while collecting reliable UBI data.

The Usage Based Insurance (UBI) has introduced the pay as you go system which means a reckless driver will be charged more premium than a responsible driver. This system has also improved the claim system in case of an accident. The software has also made the car ride safer than before. Tesler App will give you more detailed view of the software. 

It seemed that insurers have moved past the question of whether usage based insurance is a good idea. They mostly agree that it is the way of the future – perhaps a whole new model for connected consumer engagement – crucial in a digital economy.

They’ve also moved past the debate of whether smartphone UBI platforms can be trusted. If smartphone telematics is reliable enough for Progressive and Allstate, others are willing to jump on the bandwagon too. In fact, I spoke with several executives who said they knew for sure that their programs would not involve OBDs due to the added expense and consumer inconvenience. They fully intend to implement smartphone UBI platforms. After all, the smartphone platform is the only choice that can facilitate the customer-centricity they desire in their future business models.

So, it seems that the only question that remains for most is: WHO is the right partner?

There’s no question that usage based insurance poised for industry disruption. How soon will it happen? How long will it take for drivers to full engage with their insurers’ smartphone UBI programs? Only time will tell. For another perspective on the show and the future of usage based insurance, read this post.

Key advantages for your UBI auto insurance program

Driveway positions you to stand out in the usage based insurance market with a simple solution that overcomes all previous challenges and complexities. Our “unplugged” UBI business model sheds the weighty overhead and launch costs inherent to traditional OBD UBI programs. With our smartphone-based solution, you can quickly and cost-effectively reap the benefits of the emerging usage based auto insurance market.

Low cost of entry (NO hardware costs)
Instant app branding
Speed to market and easy to scale
No driver interaction required – completely non-intrusive
Intuitive safety scoring model
24/7 access to advanced analytics
Easy, free app download to policyholders’ iPhone and Android smartphones
Fun, engaging driver feedback
Already installed and tested with 170,000 drivers so you have control data to compare against
A friendly interactive conduit for providing customer value
Proven fourth-generation solution works with all U.S. wireless carriers
Fully customizable pilots and programs to meet each insurer’s needs

Usage Based Insurance Technology Spotlight – The Driveway Driver Signature

The smartphone is always along for the ride – whether your policyholders are driving their cars, riding in others’ cars or taking public transportation. How does the app differentiate between these activities? Differentiation is made possible by Driveway Driver Signature.

Before we get into the details of the Driver Signature, let’s first take a look at the technology behind the Driveway App. The Driveway App uses very rich data based on sensor fusion from 10 built-in sensors, triggering and empowering one another, facilitating advanced context recognition, accurate driving analysis and low battery usage. Sensor fusion is the combining of sensory data from multiple sensory sources in such a way that the resulting information is more accurate and meaningful than would be possible if these sources were used individually.

Over time, the Driveway platform gains familiarity with driver patterns and increases its ability to detect unusual behavior. Pattern recognition features include:

Driver signature: Driveway analyzes elements of driving such as average speed, routes, and time of day, over long periods of time to build patterns and identify who is driving.
Vehicle signature: Driveway analyzes environmental elements (e.g. Bluetooth signature) over longer periods of time to identify what car is being driven.
Public transportation: Driveway analyzes elements of driving such as average speed, routes, time of day, accelerating and braking patterns, and compares against known public transportation routes time to identify trips taken on public transportation including trains, buses and subways. While public transportation may seem like a big issue, because only a very small percentage of the U.S. population (roughly 5 percent) regularly uses public transportation, and a percentage of those people don’t own vehicles or purchase car insurance.