Protect Your Investments: Introducing Our Revolutionary Usage Insurance Market

Usage-based insurance (UBI) is a type of auto insurance policy that utilizes telematics technology to track and monitor the driving habits of policyholders. This technology collects data on factors such as speed, distance traveled, time of day, and braking and acceleration patterns, and this information is then used to calculate premiums based on individual driving behavior. The usage-based insurance market has been growing in popularity in recent years, as it offers a more personalized approach to auto insurance and can lead to lower premiums for safer drivers. Additionally, UBI policies can incentivize safer driving habits, as drivers who exhibit safe driving behaviors can earn discounts or other rewards.

UBI policies are typically offered by traditional insurance companies, as well as newer insurtech startups that specialize in telematics technology. These policies may be offered as standalone products or as an optional add-on to traditional auto insurance policies. The usage-based insurance market is expected to continue growing in the coming years, as more consumers become aware of the benefits of personalized insurance policies and as the technology continues to improve. However, there are still some challenges to be addressed, such as concerns over data privacy and the potential for technical malfunctions in the telematics devices.

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Key findings of the Usage Insurance market study:

  • The report provides a present market outlook on Usage Insurance. Additionally, the Usage Insurance market share is anticipated to grow with a CAGR of 17% in the forecast period.
  • Regional breakdown of the Usage Insurance market based on predefined taxonomy.
  • Innovative manufacturing processes implemented by Usage Insurance vendors in detail.
  • Region-wise and country-wise fragmentation of the Usage Insurance market to grasp the revenue, and growth outlook in these areas.
  • Changing preferences among consumers across various regions and countries.
  • Factors (Positive and Negative) impacting the growth of the global Usage Insurance market.
  • Usage Insurance price, market share, and Trends forecast for assessment period 2021-2031

Competitive landscape analysis

The market survey conducted by offers key developments and challenges affecting the pharmaceutical industry, subsequently influencing demand and sales in the Usage Insurance market. To study competitive trends across the industry, the report profiles some of the leading players operating in the Usage Insurance market including

  • Insure the Box Limited
  • Allstate Insurance Company
  • State Farm
  • Uniqa Insurance Group AG
  • Groupama
  • Generali Group
  • UnipolSai Assicurazioni S.p.A
  • Liberty Mutual Group
  • Allianz SE
  • Progressive Corporation

Report benefits & key questions answered

  • Usage Insurance historical market outlook: the market intelligence survey report discloses the demand and sales projections of Usage Insurance over the last forecast period 2016 to 2020.
  • Post impact of covid on the Usage Insurance market: the pharmaceutical industry has been largely influenced by covid-19 pandemic. The market survey assesses how current trends that will influence expenditure on Usage Insurance, thus affecting the market growth.
  • Usage Insurance market trend analysis: the report provides in-depth overview of the past, recent, and upcoming trends in the Usage Insurance market to assist the businesses to formulate their strategies for expansion.
  • Usage Insurance category & segment level analysis:’s category & segment level analysis provides insights into Usage Insurance sales outlook on lucrative and nascent product types. The report assists the market players to identify potential remunerative segments and set sales targets at local, country, and regional level.
  • Usage Insurance company & brand share analysis: the report discloses the competitiveness of the Usage Insurance market and highlights the market share captured by tier 1, tier 2, and tier 3 players operating in the landscape.

Key Segments Covered

·         By Policy Type

    • Pay-how-you-drive(PHYD)
    • Pay-as-you-drive(PAYD)
    • Manage-how-you-drive(MHYD)

·         By Product

    • Black Box
    • OBD Dongle
    • Smartphone
    • Others

·         By Vehicle

    • Passenger Vehicle
    • Commercial Vehicle

·         By Region

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia
    • Oceania
    • MEA




Demand Of The Overall Usage Insurance Is Projected To Reach Nearly US$ 150 Bn By 2031

The global demand of the overall Usage Insurance market accounted for almost US$ 30 Bn in 2020 and is projected to reach nearly US$ 150 Bn by 2031, expanding 5x across the 2021-2031 forecast period.

Growing complexities in the one-size-fits-all approach associated with general automotive insurance is prompting increased uptake of usage based insurance, which are far more dynamic and accurate in nature. Demand for black box usage insurance is expected to remain most prominent, amid wider connectivity and higher accuracy.

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Key Points Addressed in Usage Insurance Industry Analysis

Market Estimates and Forecasts (2016-2031)
Key Drivers and Restraints Shaping Market Growth
Segment-wise, Country-wise, and Region-wise Analysis
Competition Mapping and Benchmarking
Brand Share and Market Share Analysis
Key Product Innovations and Regulatory Climate
COVID-19 Impact on Usage Insurance and How to Navigate
Recommendation on Key Winning Strategies
Usage Insurance Consumption Analysis 2016-2020 vs Market Outlook 2021 to 2031

According to Fact.MR- market research and competitive intelligence provider, the global usage insurance industry grew to a value of approximately US$ 30 Bn by 2020. As conventional automotive insurance experiences significant constraints, vehicle owners are increasingly relying on usage-based insurance to optimize costs.

How are Good Driving Practices Paving Way for Usage Insurance?
Incentives for better driving habits will increase drivers’ motivation to improve their driving behavior. It leads to fewer traffic violations and accidents, resulting in fewer claims for insurance companies. This could prevent most drivers from paying more in rates and thus save them some money.

Implementation of tools for tracking drivers’ driving behavior through the use of telematics is acquiring significant traction. The adoption of various technologies, including odometers, smartphones, and OBD dongles, has profoundly affected the driving behavior of consumers.

The coverage provided by usage-based insurance can offer current and ongoing details about driving habits, enabling appropriate calculation of rates and discounts quickly. The maximum discount offered is 25 percent, but most drivers receive a five to ten percent discount after recording driving.

Key Segments Covered

Policy Type



Black Box
OBD Dongle


Passenger Vehicle
Commercial Vehicle

Competitive Landscape
Major players with a prominent share in the market are focusing on expanding their customer base.

Earnix, a global provider of advanced rating, pricing, and product personalization solutions for insurers and banks announced its acquisition of AI-Powered telematics provider Driveway Software Corporation’s assets. It will be joined by Driveways’ strong and highly capable team of domain-rich experts.
On June 16, 2020, USAA is expected to acquire Noblr, a digital insurer offering behavior-based auto insurance. Dedicated to military personnel and their families, the company says its acquisition will help make it more competitive by upgrading its services. Financial strength was also cited as a factor as to why the company could acquire companies in this space and accelerate innovation.