Car insurance has been stuck in the last century, creating premiums based on a one-size-fits-all mentality, like whether you went to college or not. But while a degree in neuroscience might make you a better neurosurgeon... it may not necessarily make you a better driver.  

The old way of pricing insurance completely skips over the most important fact of them all — that you’re actually a safe driver. You follow the speed limits, you avoid hard braking whenever possible, and you don’t text while driving (and other similar behaviors). 

You could keep paying for outdated insurance that doesn’t fit your needs or take how you drive into account... but why would you want to? 

If you're looking to save money on personal auto coverage, then Novo’s usage-based insurance may be the perfect fit. Even if you think your driving skills may not be the best, the Novo Drive program could be a good choice for you. We offer safe driving tips and will coach you on how to improve behind the wheel... which ultimately will help bring down your rates. 

Usage-based insurance, sometimes shortened to UBI, is a type of insurance which monitors driving behaviors (such as speeding and hard braking) to better assess your risk and provide a more personalized price. In other words, it is insurance with premiums that incorporate how the user actually drives. 

By using this technology, we can track how safe your driving habits are.  

While this kind of tech has been around for a while, it used to be a more cumbersome process which required an insurer to mail you a plug-in device (sometimes called a dongle). This device then needed to be permanently plugged into the vehicle’s OBD-II port (a small connector, usually under the dash on the driver’s side) to capture and send the driving data. 

But with Novo, you can skip the additional plug-in... we make it as simple as downloading an app on your smartphone.  

Many cars and trucks rolling off the assembly line today are even equipped with the necessary connected capabilities to transmit driving data, eliminating the need to utilize your smartphone should you so choose.  

Enrolling in telematics will bring down your rates — immediately after enrolling in Novo Drive, you’ll receive a participation discount of up to 10%.   But even more exciting, you’ll have the opportunity to save up to 30% with a driving behavior discount that takes effect at your next renewal.  

Unlike UBI programs from some other insurers, Novo is focused on finding ways to help you improve your score. In fact, we’ll give you tips on how to drive more safely to save even more money in the future. 

Younger drivers or those with a low credit score may especially benefit as they are typically charged above-average premiums that may not be an accurate reflection of their driving behavior (this is because insurers typically deem younger drivers as a higher risk demographic group). UBI is also a great way for parents to have peace of mind that their teen is being responsible on the road. 

While there are many factors that go in to determining premiums (such as the vehicle being insured and where it’s being driven), Novo is better equipped to align premiums based on the individual driver’s habits behind the wheel, thanks to UBI and telematics.  

Did you know your insurance can do more than cover damages after an accident?  

In the event of a collision, telematics data can also provide valuable evidence to determine who is at fault and protect you against fraud. 

Industry research firm Ptolemus is projecting as high as 50% of new personal auto policies will fall into the UBI category by 2025 and even 75% by 2030.  

Current macroeconomic conditions have been driving a notable uptick in UBI adoption, particularly among more price-sensitive consumers, as they search for lower premiums to help alleviate increased mobility costs from inflation, supply chain issues, and energy policies. 

One of the greatest barriers to adoption remains concerns over privacy.  

Yet many consumers with these concerns are already using mobile apps that collect all 32 segments of personal data that Apple's App Store flags (including location, sensitive info, and browsing history). They are also sharing up to 79% of their personal data with third parties — all without receiving any compensation in return. 

At Novo, your data is always our top priority. Protecting your data is important to us and that’s why we’re transparent about what we collect.  

Learn more about Novo and telematics with articles on our blog, such as: 

• Novo Drive: The Driving Program for Generation Now

• Introducing Novo   

• Auto Insurance: Transformation or Disruption    

• Current State of Auto Insurance 

Or check out helpful safety tips to help your ride and your wallet, via Novo Drive: 

• Your Car Emergency Kit, Explained   

• 6 Ways to Defend Yourself Against Drunk Drivers   

• Car Fires: Can it Happen to You? 

We’re rolling out across the country, so get a free quote today and see how much you can save with Novo.