With usage-based programs still relatively new to the auto insurance industry, it would be understandable if some carriers were wondering what the return on investment might be when it comes to telematics. 

Indeed, insurers might be tempted to repeat the catchphrase coined by the lead character in the 1996 movie "Jerry Maguire," featuring a high-profile sports agent whose mantra was: "Show me the money!"

So, what ROI should insurers expect on usage-based insurance (UBI), in which auto carriers monitor the driving performance of participating policyholders via a telematics device installed in their vehicles—or, more likely before long, through an app downloaded onto their smartphones?

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Personal Lines