Traditionally Car Insurance premiums are based on the driver profile, driving region, accident vulnerability etc. Industry then saw the introduction of Usage Based Insurance(UBI) types where the insurance premiums were based on the actual miles driven. Though it was a step in right direction still it left customers believe that the insurance premiums were more necessary evil. Insurance companies are now trying to change this perception by building relationship with customers through usage of Pay on How you drive (PYHD) scheme; Italian insurance companies have pioneered this approach through usage of Telematics ( devices used to measure and record the driving conditions)
This has set tone to new set of innovation in auto insurance industry under the banner of Usage Based Insurance (UBI) pricing.
Story worth looking to come up with alternative /creative pricing models !
http://www.naic.org, http://analysis.telematicsupdate.com,Image :http://www.confused.com