The National Association of Insurance Commissioners (NAIC) has introduced a new assessment tool to help consumers determine whether they should consider usage-based insurance (UBI).
For more than 30 years, the number of 16- to 44-year-olds with driver’s licenses has steadily dropped, while reliance on public transit has risen according to a report by Financial Regulation News. In 1983, almost 90% of 19-year-olds had a driver’s license. In 2014, that number had fallen to 69%.
Those trends mean that new products like usage-based insurance are finding new customers. The NAIC’s new tool, DriveCheck, helps consumers determine if usage-based insurance is their best option.
“New insurance products may be an option for some drivers whose habits have shifted,” said Ted Nickel, NAIC president and insurance commissioner of Wisconsin. “That’s why the NAIC created DriveCheck. The simple online assessment helps consumers understand how UBI works and determine if it’s a good fit for their driving behaviors.”
DriveCheck asks consumers questions about their driving habits while explaining how UBI works, according to Financial Regulation News. Consumers then receive an assessment on whether UBI would be a good option for them.