Usage-Based Policies

Abstract

Methods, computer-readable media, systems and apparatuses for determining and implementing usage-based insurance policies are presented. A first cost per day and second cost per day associated with the usage-based insurance policy may be determined and a cost for a first trip may be determined based on the cost per day and cost per mile. Driving data received during the first trip may be used to modify the cost per day and cost per mile to determine a second cost per day and/or cost per mile that may be used to determine a cost of subsequent driving trips.

What is claimed is: 
     
         1 . A usage-based insurance system, comprising:
 a plurality of sensors arranged on a vehicle;   an on-board vehicle computing device including at least one processor and at least one memory storing computer readable instructions that, when executed by the at least one processor, cause the on-board vehicle computing device to:
 receive, from the plurality of sensors on the vehicle, driving data associated with operation of the vehicle during a first driving trip, the driving data including at least a start time of the first driving trip, an end time of the first driving trip, a distance of the first driving trip, and a driving behavior associated with the first driving trip; and 
 transmit, to an insurance system server, the received driving data; 
   the insurance system server to:
 retrieve, from one or more insurance system databases, insurance information associated with the vehicle, the insurance information including a usage-based insurance policy; 
 determine, from the retrieved insurance information, a cost per day and a cost per mile for insuring the vehicle based on the usage-based insurance policy; 
 store, received from a user device associated with the vehicle, a predetermined amount of funds for a premium for the usage-based insurance policy in a first account; 
 receive, from the on-board vehicle computing device, the driving data for the first driving trip; 
 analyze the driving data to determine a distance and time associated with the first driving trip and a type of the driving behavior; 
 determine, based on the analyzed driving data, a cost of the first driving trip; and 
 reduce a balance of the premium in the first account by the cost of the first driving trip. 
   
     
     
         2 . The usage-based insurance system of  claim 1 , wherein the driving behavior is a hard braking behavior. 
     
     
         3 . The usage-based insurance system of  claim 1 , wherein reducing the balance of the premium in the first account includes transferring an amount of funds associated with the cost of the trip from the first account to a second account. 
     
     
         4 . The usage-based insurance system of  claim 3 , wherein the first account and the second account are both associated with an insurance provider. 
     
     
         5 . The usage-based insurance system of  claim 1 , the insurance system server further including instructions that, when executed, cause the insurance system server to:
 receive environmental condition data for the first driving trip.   
     
     
         6 . The usage-based insurance system of  claim 5 , wherein the environmental condition data includes at least one of: inclement weather, precipitation, heavy traffic volume, and night driving. 
     
     
         7 . The usage-based insurance system of  claim 1 , the insurance system server further to:
 determine whether the reduced premium balance is below a predetermined threshold; and   responsive to determining that the reduced premium balance is below the predetermined threshold, automatically attempt a transfer of funds from a payment account to the first account.   
     
     
         8 . One or more non-transitory computer-readable media storing computer-executable instructions that, when executed by a processor, cause an insurance system server to:
 receive, from a telematics device in a vehicle, driving data including a start time of a first driving trip, an end time of the first driving trip, a distance of the first driving trip, and a driving behavior of the first driving trip;   receive a premium for a usage-based insurance policy, the premium including an amount of funds stored in an account associated with one of a user or the vehicle;   receive, from an insurance system database, insurance information including a first cost per day and a first cost per mile for the usage-based insurance policy;   receive environmental condition data for the first trip;   determine a cost of the first trip based on a duration of the first trip, the distance of the first trip, the first cost per day, and the first cost per mile;   reduce the amount of funds associated with the premium and stored in the account by the cost of the first driving trip and storing a balance of remaining funds in the account;   subsequent to determining the cost of the first driving trip, modifying the cost per day and cost per mile for operating the vehicle based on the received driving data and the received environmental data to determine a second cost per day and a second cost per mile;   receive, from the telematics device, driving data for a second driving trip including a start time of the second driving trip, an end time of the second driving trip, a distance of the second driving trip and any occurrences of the driving behavior in the second driving trip;   determine a cost of the second driving trip based on the received driving data for the second driving trip, the second amount per day and the second amount per mile; and   reducing the balance of the remaining funds in the account by the cost of the second driving trip.   
     
     
         9 . The one or more non-transitory computer-readable media of  claim 8 , further including instructions that, when executed, cause the insurance system server to:
 determine a threshold number of miles per day;   determine whether the distance of the first driving trip is greater than the threshold number of miles per day;   responsive to determining that the distance of the first driving trip is not greater than the threshold number of miles per day, determining the cost of the first driving trip based on the distance of the first driving trip; and   responsive to determining that the distance of the first driving trip is equal to or greater than the threshold number of miles per day, determining the cost of the first driving trip based on the threshold number of miles per day.   
     
     
         10 . The one or more non-transitory computer-readable media of  claim 8 , further including instructions that, when executed, cause the insurance system server to:
 determine whether the reduced balance of the remaining funds is below a predetermined threshold; and   responsive to determining that the reduced balance of the remaining funds is below the predetermined threshold, automatically attempt to transfer funds from a payment account to the first account.   
     
     
         11 . The one or more non-transitory computer-readable media of  claim 10 , wherein the payment account is a credit card of the user. 
     
     
         12 . The one or more non-transitory computer-readable media of  claim 8 , wherein the driving behavior includes hard braking. 
     
     
         13 . The one or more non-transitory computer-readable media of  claim 8 , wherein the driving behavior includes at least one of: swerving, speeding, and rapid acceleration. 
     
     
         14 . An insurance system server device comprising:
 a communication port receiving driving data obtained from a plurality of sensors arranged on a vehicle, the driving data comprising a start time of a first driving trip, an end time of the first driving trip, a distance of the first driving trip, and a driving behavior of the first driving trip;   a processor; and   one or more non-transitory computer-readable media storing computer-executable instructions that, when executed by the processor, cause the processor to:
 receive a premium for a usage-based insurance policy, the premium including an amount of funds provided by a user and stored in an account associated with one of a user and the vehicle; 
 receive, from an insurance system database, insurance information including a first cost per day and a first cost per mile for the usage-based insurance policy; 
 receive, via the communication port and from the plurality of sensors, environmental condition data for the first trip; 
 determine a cost of the first trip based on a duration of the first trip, the distance of the first trip, the first cost per day and the first cost per mile; 
 reduce the amount of funds associated with the premium and stored in the account by the cost of the first driving trip and storing a balance of remaining funds in the account; 
 subsequent to determining the cost of the first driving trip, modifying the cost per day and cost per mile for operating the vehicle based on the received driving data and the received environmental data to determine a second cost per day and a second cost per mile; 
 receive, from the plurality of sensors arranged on the vehicle, driving data for a second driving trip including a start time of the second driving trip, an end time of the second driving trip, a distance of the second driving trip and any occurrences of the driving behavior in the second driving trip; 
 determine a cost of the second driving trip based on the received driving data for the second driving trip, the second amount per day and the second amount per mile; and 
 reducing the balance of the remaining funds in the account by the cost of the second driving trip. 
   
     
     
         15 . The insurance system server device of  claim 14 , wherein the one or more non-transitory computer-readable media further store computer-executable instructions that, when executed, cause the processor to:
 determine a threshold number of miles per day;   determine whether the distance of the first driving trip is greater than the threshold number of miles per day;   responsive to determining that the distance of the first driving trip is not greater than the threshold number of miles per day, determining the cost of the first driving trip based on the distance of the first driving trip; and   responsive to determining that the distance of the first driving trip is equal to or greater than the threshold number of miles per day, determining the cost of the first driving trip based on the threshold number of miles per day.   
     
     
         16 . The insurance system server device of  claim 14 , wherein the one or more non-transitory computer-readable media further store computer-executable instructions that, when executed, cause the processor to:
 determine whether the reduced balance of the remaining funds is below a predetermined threshold; and   responsive to determining that the reduced balance of the remaining funds is below the predetermined threshold, automatically attempt to transfer funds from a payment account to the first account.   
     
     
         17 . The insurance system server device of  claim 16 , wherein the payment account is a credit card of the user. 
     
     
         18 . The insurance system server device of  claim 14 , wherein the driving behavior includes hard braking. 
     
     
         19 . The insurance system server device of  claim 14 , wherein the communication port further receives, from the plurality of sensors arranged on the vehicle, environmental condition data comprising at least one of inclement weather, precipitation, heavy traffic volume, or night driving. 
     
     
         20 . The insurance system server of  claim 14 , wherein the non-transitory computer-readable media storing computer-executable instructions further cause the processor to:
 determine whether the reduced premium balance is below a predetermined threshold; and   responsive to determining that the reduced premium balance is below the predetermined threshold, automatically attempt to transfer funds from a payment account to the first account.