Which of the following is a common characteristic of UBI?

A common characteristic of Usage-Based Insurance (UBI) is that drivers can receive real-time feedback on their driving habits. This feedback is made possible through telematics technology, which collects data on various driving behaviors such as speed, acceleration, braking patterns, and mileage. This information allows insurance companies to provide personalized insights to drivers, highlighting safe driving practices and areas for improvement.

This real-time feedback is especially beneficial for promoting safer driving behavior, as drivers gain immediate awareness of how their actions impact their safety and potentially their insurance premium. The ability to receive such information can motivate policyholders to adjust their driving habits to qualify for lower premiums or rewards.

In contrast, other options suggest characteristics that are not typical of UBI. For instance, premiums in UBI are typically variable and influenced by driving habits rather than fixed, thus disproving the notion that they are constant regardless of behavior. Furthermore, UBI specifically emphasizes the relationship between a driver's behavior and their insurance risk profile, contrary to any notion that it isn't influenced by behavior. Finally, UBI primarily assesses individual driver data rather than requiring multiple drivers to evaluate premiums. This focus on individual behavior sets it apart from traditional insurance models, reinforcing the significance of option B as a defining characteristic of UBI.