What is one of the main goals of usage-based insurance?

One of the main goals of usage-based insurance is to incentivize improved driving habits among users. This type of insurance uses telematics technology to monitor driving behavior, such as speed, braking patterns, and mileage. By providing feedback and potential discounts based on safe driving practices, it encourages drivers to adopt better habits, which can ultimately lead to safer roads and reduced accident rates.

This approach aligns the interests of both insurance companies and policyholders, as safer driving lowers the risk of claims and helps keep costs down for everyone involved. It's a modern adaptation of insurance practices that acknowledges the role of behavior in risk management.