1. Good drivers pay less: A study of usage-based vehicle insurance models.
- Author
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Bian, Yiyang, Yang, Chen, Zhao, J. Leon, and Liang, Liang
- Subjects
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AUTOMOBILE insurance , *AUTOMOBILE drivers , *RISK assessment , *BEHAVIORAL economics , *PERFORMANCE evaluation , *ATTITUDE (Psychology) - Abstract
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. [ABSTRACT FROM AUTHOR]
- Published
- 2018
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