How technology transformed transport insurance has transformedUsage based insurance (UBI) is increasing and according to data from Global Market Insights, the commercial side of the UBI market is expected to grow by more than 18% in 2024. Commercial freight transport has long been at the forefront of the market. market when it comes to the use of usage-based monitors, and understanding how UBI has influenced the commercial truck sector, can give a snapshot of how effective UBI will be in other sectors in the coming years.

It was not so long ago that truck logs were kept on paper, allowing professional drivers to easily manipulate hours and distances. As technology progresses, truckers' ability to bypass regulations on mileage and time on the road has diminished significantly, and in 2015 electronic registration devices were mandated by commercial motorists, allowing automatic reporting directly to truck companies.

"What happened to [e-log books] it really affected the insurance market, "said Laird Rixford, CEO of Insurance Technologies Corporation (ITC)." There was always a problem with insurance companies about what is the liability of a truck driver that exceeds hours? & # 39 ; The transport companies had the risk of liability that if one of their truckers were to travel over the log limit, it was possible that their coverage would be refused if an accident occurred. "

Ultimately, consumers of truck insurance benefited most from the ELD result and gained a better understanding of the use of their vehicles, giving their insurance agents and insurance companies a better perspective on how, when and where vehicles were used.

With the popularity of UBI increasing, insurance agents, consumers and businesses can benefit from the fact that the model enters new areas of the market.

"For example, you can negotiate short-term insurance to cover a camera in case it is dropped at Niagara Falls or similar – which can be considered as usage-based insurance, but when you talk about use-based insurance, how often you use what you insure, from the point of view of how often you yourself report the number of miles you drive and how aggressive you drive, usage-based technology comes into the picture through the behavior of the consumer when driving of a vehicle, at the point [ELD] was mandated, it has really changed the truck industry, "Rixford explains.