What type of data is typically collected by UBI programs?

The correct answer identifies the type of data that Usage-Based Insurance (UBI) programs primarily focus on. UBI programs are designed to assess the driving behaviors of individuals to determine insurance rates based on how safely and responsibly they drive. By collecting information on speed, braking patterns, and mileage, insurers can create a detailed profile of a driver’s habits. This allows them to more accurately assess risk, offer personalized insurance rates, and potentially reward safer driving.

In particular, metrics such as how often a driver brakes hard or accelerates rapidly are indicative of driving behavior that is associated with a higher or lower likelihood of accidents. Mileage can also play a critical role; for instance, drivers who log fewer miles may generally be at a lower risk for claims than those who drive frequently or long distances.

Other options, while potentially relevant to certain insurance considerations, do not capture the essence of what UBI programs aim to track for rating purposes. Weather and traffic conditions may influence driving safety but are not inherently linked to the individual driver's behavior. Driver demographics and vehicle age indeed inform risk assessments but do not directly measure how a person drives. Lastly, reviewing insurance claims from previous years provides historical context on risk but does not reflect a driver’s current behavior.