What is one key benefit of usage-based insurance?

Usage-based insurance is designed to tailor premiums based on individual driving behaviors rather than relying solely on factors like age or location. One of the primary benefits of this approach is that it actively encourages safer driving habits. Since the premiums are calculated based on how safely and responsibly a driver operates their vehicle—such as speed, braking patterns, and mileage—drivers may be more inclined to follow traffic laws and adopt safer practices to reduce their insurance costs. This benefit not only rewards conscientious driving but also has the potential to lower accident rates and promote overall road safety.