There has been much discussion about the introduction of vehicle telematics to the Canadian insurance marketplace. The idea of usage-based insurance (UBI) is that a driver’s behaviour is monitored in real time while the person drives. This information is then transmitted to the driver’s insurance company which analyses the data, assesses the likelihood of the driver being involved in an accident, and charges an insurance premium accordingly.
http://www.insblogs.com/auto/telematics-changes-dynamics-automobile-insurance-industry/