Technology is spurring innovation and altering risk scenarios throughout the economy including in auto insurance. While advanced auto safety features, the shared economy and driverless cars promise to reshape auto insurance down the road, usage-based insurance (UBI) powered by telematics is already having a major impact.

UBI is on the road to becoming a standard offering, with more insurers offering it and more consumers willing to let insurers monitor their driving habits with a telematics device in exchange for potential insurance savings.