Thank you for sharing!

Your article was successfully shared with the contacts you provided.

In early 2016, we wrote about telematics, or usage based insurance (UBI), and its effects on the insurance industry. In 2019, the UBI market reached an estimated $24 billion, and projections are that the market will grow to $125.7 billion by 2027.

Usage-based insurance can also be referred to as Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), Pay-As-You-Go, and Distance-Based Insurance. All of these terms refer to telematics. A telematics device — also called a black box or a dongle — is a small device that plugs into a vehicle’s diagnostic port, or it may be integrated into the vehicle itself, to track the mileage and monitor the driver’s behavior. A SIM card and modem in the device enables telecommunication of this information via a cellular network.

This premium content is locked for
FC&S Expert Coverage Interpretation subscribers.

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis

Already have an account?
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].

FC&S Editors


Get Answers Directly From the FC&S Experts

Submit your coverage interpretation question to the editors of FC&S for quick and reliable information.

Question of the Week

Insurance Coverage Q&A: Coverage Extensions and Deductibles ›

Does the deductible apply to coverage extensions?

Question of the Week Archive ›

Copyright © 2022 ALM Global, LLC. All Rights Reserved.