Personal information such as where you drive may also be inferred using only data such as speed and distance driven. For usage pricing, driving habits must be documented, raising privacy concerns especially in the case of systems which use continuous GPS tracking of vehicles.
#Usage based lifing drivers
Some lower-risk drivers will still subsidize some higher-risk drivers, to some extent. There are limits to the ability of any insurance system to predict future risk, including usage-based insurance.
#Usage based lifing driver
Coverage is based on other data collected from the vehicle, including speed and time-of-day information, historic riskiness of the road, driving actions in addition to distance or time travelled.Coverage is based on mileage aggregated from GPS data, or the number of minutes the vehicle is being used as recorded by a vehicle-independent module transmitting data via cellphone or RF technology.Coverage is based on the odometer reading of the vehicle.There are three types of usage-based insurance: Pay as you drive (PAYD) means that the insurance premium is calculated dynamically, typically according to the amount driven. However, the general concept of pay as you drive includes any scheme where the insurance costs may depend not just on how much you drive but how, where, and when one drives. The simplest form of usage-based insurance bases the insurance costs simply on distance driven.