UBI is a type of car insurance that usually uses a telematics device or mobile app to track a driver’s behavior. Using data from the app or device, insurers base the driver’s premiums on their mileage and driving habits. UBI programs look at several key factors to determine a driver’s rates, including the following: Miles driven Time of day the vehicle is driven Rapid acceleration Incidences of hard braking Drivers with safe driving habits and shorter commutes typically pay less with UBI than with traditional insurance. UBI can be useful for drivers looking for car insurance for bad credit, as UBI programs are less reliant on insurance credit scores when determining drivers’ rates.