IMS Insurance Telematics

Mileage-Based Insurance Telematics Programs

Mileage-based programs are seeing a resurgence. New developments in mileage-based insurance telematics are giving insurers an additional edge.

Staying Competitive With the Latest in Mileage-Based Insurance Telematics Programs

Insurers know that in order to drive demand for insurance products that offer greater value, build trust with policyholders and provide rich, engaging experiences, it’s necessary to offer more personalized insurance programs and services to policyholders. Such programs that have seen tremendous reinvention and resurgence are mileage-based insurance telematics programs.

Mileage-based (Pay-per-mile) car insurance programs are regaining traction with insurers who are looking not only to compete, but thrive in developing innovative insurance telematics offerings in a mature market. Mileage-based programs are often referred to as the Pay-As-You-Drive model, a model where policyholders pay based on how many miles they drive. These programs are of great interest to the $70 billion market comprised of 95 million people who have been identified as low mileage drivers. In the past, mileage programs simply collected data on a policyholder reported mileage. More personalization and new technology developments are now enabling these programs to vary greatly with respect to mileage context used, rate determination and billing model. As a result, they are quickly generating new interest as well as capturing market share.

Mileage-based Program Scenario Example: A policyholder can be charged a flat rate fee every month based on typical insurance costing factors plus an additional fee per mile driven, up to a certain number of miles after which point they may not be charged. Alternatively, they can pay for insurance by purchasing blocks of miles, similar to how consumers pay for prepaid cellphone fees.

Mileage programs offer auto insurers a number of benefits – they are quick to implement, offer more transparency and provide policyholders with options for insurance that meet their lifestyle needs and values. What is more, they also help increase policyholder retention and encourage safer driving through behavior-based coaching. In fact, research shows that telematics programs overall increase policyholder retention by 18 percent - 20 percent through regular engagement and driving feedback.

Usage-Based Insurance Datasheet

Usage-Based Insurance Datasheet

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Comparing Mobile Apps, Hybrid Bluetooth and OBD-II White Paper


Increase Your Customer Base and Grow Your Entire Book of Business

It’s no surprise that insurers are already re-thinking their insurance program portfolio and adding new mileage-based insurance programs as available offerings to their book of business. For example, our mileage-based client Amica Mutual Insurance Co., a top 25 automotive insurer in the United States, announced the introduction of a mileage-based program called FlexMile which allows policyholders to purchase a set number of miles up front and lock in a rate good for up to 3 years. By doing so, they are able to offer flexible, personalized and innovative programs that deliver unique and engaging experiences demanded by policyholders, which also help better control claims ratios and costs for the insurer. Learn more about Amica Mutual Insurance Co. Mileage-based Program.


Pricing Structures for Mileage-based Insurance Telematics Programs

Below is a breakdown of the different pricing structures that can be implemented in a mileage-based insurance telematics program, starting with a traditional “Basic Rate” pricing structure, followed by a “Personalized Rate” and finally, a more comprehensive “Variable Mileage Rate”:


Pay-per-mile Insurance Telematics Solution - Pricing Structure



Billing Options for Mileage-based Insurance Telematics Programs

In addition to the flexibility and personalization around pricing structures available, a variety of billing options also exist ranging from a traditional “Prepaid Mileage” plan to “Post-paid Recurring Billing” and finally, “Post-paid Ad-hoc Billing”. Here is a detailed breakdown:


Pay-per-mile Insurance Telematics Solution - Billing Options

Given the flexibility when it comes to pricing and billing structures, along with its proven capability to provide a richer experience to policyholders and as a result, attract and retain them, it’s no surprise why new pay-per-mile insurance telematics programs are ideal programs for insurers looking to drive more Average Revenue Per Unit (ARPU) from their existing book of business and attract new consumers by offering what they are looking for in this new world of on-demand needs.



Why IMS for Mileage-based Insurance Telematics Programs?


IMS UBI Intelligence delivers on the promise of being the premier, most complete UBI solution, offering a one-stop shop for an insurer’s UBI needs - no additional suppliers or multiple partners to work with.



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One-stop shop for program needs

IMS UBI Intelligence offers insurers a single source provider for all their UBI program needs, including hardware, logistics, support, secure data warehousing, data analytics, driver portals and more. No need to deal with multiple suppliers and partners.

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Fully Customizable Solutions Without Sacrificing Speed to Market
IMS UBI Intelligence provides the best of both worlds: 1) a turnkey approach to improve time-to-market while also 2) being customizable to branding and program requirements.
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Value-added Services for Future Revenue Opportunities
IMS UBI Intelligence is powered by DriveSync® – IMS’ connected car platform – providing insurers the ability to roll out future revenue-generating services to current customers. Examples of value-added services include: infotainment, roadside assistance, vehicle health and more.
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Ability to Offer Differentiated and Segmented Programs
IMS UBI Intelligence provides solution options so insurers can create targeted, differentiated programs for specific audiences and geographies.
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The Best UBI Experts in the Industry
Access to a team of subject matter experts with the experience and best practices developed by working with numerous insurers around the globe.
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Flexible and Scalable Architecture
IMS' award–winning technology services platform is future-proofed for years to come and offers an unmatched solution that will help ensure the success of your UBI program in today’s competitive marketplace.

Pay-Per-Mile Insurance: Data Collection Technology Options

As the only true data source agnostic solution on the market, we work closely with you in choosing the right technologies to adopt to ensure you achieve your growth goals and potential. We make the whole process of a successful launch as simple and easy as possible.


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Multiple UBI Deployment

Mobile, OBD, Bluetooth® Wireless Technology Enabled Devices, Hybrid and OEM: Insurers can now easily retrieve vehicle information and driving data through multiple deployment options to reach the intended objectives and goals of a program – including segmentation options that meet the full needs of their book of business.

Explore Data-Agnostic Collection Options >


The DriveSync connected car platform can leverage data from multiple sources including OBD telematics devices, mobile app-based solutions and automotive OEM systems to ensure that your business is ready for growth and change.

Mobile Telematics Solutions

IMS offers a number of new innovative smartphone telematics offerings to meet your specific telematics needs.

Explore Mobile Telematics >



The Bluetooth® word mark and logos are registered trademarks owned by Bluetooth SIG, Inc. and any use of such marks by Intelligent Mechatronic Systems (IMS) Inc. is under license.

Customization and Flexibility Options

IMS UBI Intelligence offers an unmatched solution that will help ensure the success of your program in today’s competitive marketplace.


API Integration

Unleash the power of a comprehensive suite of interfaces that allows you to create differentiated solutions based on your strategy and target market. Build highly differentiated, bespoke solutions or leverage our reference applications to get to market quickly.


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Secondary Driver Option

Give policyholders the flexibility of viewing driving data of secondary drivers to promote safer behavior. You also benefit from the ability to design differentiated programs targeted at new segments, such as multi-driver families, new driver coaching programs and car sharing.

Get More Detail About the Various Mileage-based Insurance Telematics Programs that Can Get You Ahead of the Competition.

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IMS Mileage-Based Insurance Telematics Components

For Auto-Insurers

All the tools you need to manage and administer a successful pay-per-mile insurance program.



For End Users

One deployment, using the DriveSync platform, can support both sides of your insurance business – personal lines and commercial lines users.



Benefits for auto insurers

Benefits for drivers

  • Increase loyalty of current policy holders & attract new customers
  • Generate revenue via value-added services
  • Lower risk, cost and claims
  • Personalized auto insurance premiums
  • Increased driver education & improved driving skills
  • More awareness for better preventative maintenance 


This product is powered by our intelligent connected car platform DriveSync®. What this means is that your organization can have access to a variety of value-added connected car services, in addition to this specific program. The DriveSync® connected car platform offers services that connect drivers to their cars, drivers to other drivers and drivers to their surroundings – turning any vehicle into the ultimate connected car.





Your customers can start with IMS UBI Intelligence, and add-on various telematics and valued-added services, including young drivers programs, fleet monitoring programs, roadside assistance, vehicle health and more. Customers benefit from a broader, more enticing connected car experience that saves time, money and lives. Your organization benefits from new revenue-generating services that also help lock in customers. Start with a program today and expand with new services in the future – it’s that easy.

Learn more about IMS Mileage-Based Insurance Telematics Programs

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