What technology is commonly used to monitor driving behavior in UBI?

The correct choice highlights that both GPS and telematics devices are integral tools in monitoring driving behavior for Usage-Based Insurance (UBI). These technologies work together to collect detailed data on a driver's habits, such as speed, braking patterns, acceleration, and overall driving safety.

GPS devices are essential because they track the vehicle's location and help in understanding the routes taken by the driver, and even the time of day those journeys occur. This data can provide insights into driving behavior, allowing insurance companies to assess risk based on actual driving patterns.

Telematics devices, which may also incorporate GPS technology, are designed specifically for monitoring vehicle performance and behavior. They gather real-time data, allowing for a more comprehensive view of how a vehicle is operated over time.

By utilizing both GPS and telematics, insurers can create personalized insurance models that reflect the true risk each driver poses, making UBI an innovative and tailored solution for modern driving behaviors. This approach contrasts with outdated or less effective methods, such as relying solely on paper logs, which cannot provide detailed or real-time information.