Usage-based insurance (UBI) availability continues to grow for auto insurance customers, but customer adoption rates remain sluggish. According to the J.D. Power 2018 U.S. Auto Insurance Study, 42 percent of personal auto insurance customers in the United States had a UBI program available to them, up from 32 percent in 2015. However, only 10 percent of customers are active participants in a UBI program, up from 8 percent in 2015.

UBI programs allow for the tracking of real-time driving behavior and more precise risk assessment and policy premium assignment. However, customers are still slow to adopt, citing privacy/data sharing as their top reason for not participating in the program despite the potential for policy discounts for participation. The government has responded to those concerns through passage of the Driver Privacy Act of 2015, and 16 states have adopted similar laws and regulations related to data privacy.