Good drivers pay less : A study of usage-based vehicle insurance models

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

11 Scopus Citations
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Original languageEnglish
Pages (from-to)20-34
Journal / PublicationTransportation Research Part A: Policy and Practice
Early online date15 Nov 2017
Publication statusPublished - Jan 2018


Usage-based insurance (UBI) has been attracting more and more attention; however, two open research questions are how behavioral data of drivers affects driving risk and how driver behavior should affect UBI pricing schemas. This paper proposes a driver risk classification model to evaluate the risk level of drivers based on in-car sensor data. A Behavior-centric Vehicle Insurance Pricing model (BVIP) and a vehicle premium calculation prototype are developed in this paper. Based on empirical data, our research results show that BVIP achieves better accuracy in terms of risk-level classification and the prototype achieves good performance in terms of effectiveness and usability.

Research Area(s)

  • Behavior-centric vehicle insurance pricing, Driver risk-level classification, Driving behavior, Usage-based insurance