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    1. Home
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    3. Usage-Based Insurance

    Usage-Based Insurance terms

    Telematics, tracking apps and pay-per-mile.

    Latest coverage of this topic All glossary
    Annual mileageHow many miles a car is driven in a year, a rating factor because more time on the road means more chances of a claim.Pay-per-mile insuranceA policy priced as a monthly base rate plus a few cents for each mile driven, tracked by an app, plug-in device or the car itself.TelematicsTechnology that records how, when and how much a car is driven, through an app, plug-in device or the car itself, so insurers can price on behavior.Usage-based insuranceCar insurance priced partly on how and how much you actually drive, measured by an app, plug-in device or the car's connected services.

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