Salvador Minguijon Perez is granted a patent for an early form of telematics – an electronic data processor that monitors a driver ’ s mileage and driving manner , feeding the information back to their auto insurer . Soon after , Progressive Insurance teams up with General Motors to offer the first telematics-linked insurance .

Norwich Union becomes the first company to offer ‘ pay-by-mile ’ insurance , even securing the UK rights to Minguijon Perez ’ s patent . The motivation was originally affordability , but , as climate change continues climbing the agenda , it soon becomes a means of encouraging people to drive less .

UBI enjoys a surge in growth as consumers face the prospect of renewing their car insurance while working from home or under lockdown .

Today , some of the world ’ s biggest incumbent insurers – including Nationwide , Liberty Mutual , State Farm and Geico – all offer some form of usage-based car insurance . insurtechdigital . com 15