Usage-based Insurance Using IoT Platform

The premium of car insurance is normally calculated based on statistics i. e. car and driver information. Drivers who have the same age range pay equivalent premiums regardless of their driving behavior. We propose the usage-based insurance (UBI) system that takes driver behaviors into account. Locations and vehicle speed obtained from smartphones while driving are sent to the Internet of things platform for live monitoring and data storing. Stored data are later used to calculate driver behaviors i.e. annual distance and the frequency of harsh braking. The premium discount of 30% maximum will be awarded to drivers who have annual distance and the number of harsh braking less than predetermined thresholds.