Insurance term
Usage-Based Insurance (Telematics)
Usage-Based Insurance (Telematics) is an auto insurance program that uses driving data from a device or mobile app to help determine how a vehicle is used and, in some cases, how much a policyholder pays. The data may include mileage, time of day, speed, braking, and acceleration, depending on the insurer and program.
Example
A driver who commutes only a few miles each week may enroll in a telematics program so the insurer can track mileage and driving habits for possible premium adjustments.
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