What might discourage a driver from opting for UBI?

Mistrust of technology can significantly discourage a driver from opting for Usage-Based Insurance (UBI). Many individuals may feel uneasy about having their driving behavior monitored through telematics devices or mobile apps. This mistrust can stem from concerns regarding data privacy, potential misuse of personal information, and the reliability of the technology itself. If a driver believes that the technology used to track their driving is invasive or could violate their privacy, they may choose to avoid UBI altogether.

Trust in technology is critical for the success of UBI programs, as these rely on data collection to offer tailored insurance rates based on driving behavior. If potential customers are wary of how their data is collected, stored, and used, they are less likely to participate in UBI, even if it could save them money on insurance premiums.