Telematics Insurance: Smarter Motor Insurance Based on Your Driving Behavior
Get the Best Insurance Plan that fits for your Need
- Pay Less with Data-Driven, Behavior-Based Insurance
- What Telematics Insurance Covers
- Why Drivers Are Switching to Telematics Insurance
- Who Should Consider Telematics Insurance
- How Driving Data and Telematics Devices Work
- Types of Telematics Insurance Models
- How Telematics Insurance Policies Work
- What Is Typically Not Covered in Telematics Insurance
- Factors That Affect Telematics Insurance Cost
- How Claims Are Handled Using Driving Data
- Why Choose an Advisor-Led Approach for Telematics Insurance
- Get Telematics Insurance Tailored to Your Driving Profile
- Frequently Asked Questions
Pay Less with Data-Driven, Behavior-Based Insurance
Telematics insurance uses real-time driving data to price your motor insurance based on how you actually drive, not how your age group or postcode drives. A small device in your car or an app on your phone tracks your habits, assigns a driving score, and adjusts your premium accordingly. Since late 2024, all new vehicles sold in the GCC ship with built-in eCall modules, and the UAE Insurance Authority approved connected car insurance products through Circular No. 06/2025. PIB Secure helps drivers and fleets find the best telematics insurance coverage in the UAE.
25+ Years
insurance expertise in the UAE
26,100+
motor insurance policies placed
$14.7B*
projected global telematics insurance market by 2030
Up to 25%*
premium savings for consistently safe drivers
What Telematics Insurance Covers
So what is telematics insurance? It’s standard motor insurance, comprehensive or third-party, with one key difference: your premium is shaped by your personal driving data. Telematics insurance coverage includes everything a traditional policy does:
Comprehensive cover
Accident damage, theft, fire, and third-party liability. The full package, priced by your behaviour.
Third-party cover
Liability for damage to other vehicles and property, with rates reflecting your actual risk.
Personal accident benefits
Driver injury coverage in the event of a collision.
Roadside assistance
Breakdown and recovery services included in most plans.
Add-ons
Windscreen cover, agency repair, and rental car benefits are available, priced to your driver behavior insurance profile.
Why Drivers Are Switching to Telematics Insurance
Traditional motor insurance groups drivers into broad risk categories. A safe driver who covers 6,000 km a year can end up paying the same as someone who drives 25,000 km aggressively. Usage based car insurance changes that equation. Your premium reflects your habits, not averages.
Telematics also gives you something traditional insurance never could: real-time feedback. You can see your driving score, identify risky habits, and actively improve. Better habits mean lower costs at renewal. That feedback loop explains why 45% of drivers in telematics programs report changing their behaviour for the better.
45% of
telematics users report improved driving habits
Who Should Consider Telematics Insurance
Low-mileage drivers
If your car sits in the garage most of the week, usage based car insurance rewards you for driving less.
Careful, experienced drivers
Smooth braking, steady speed, and daytime driving earn you lower premiums through driver behavior insurance scoring.
Young and new drivers
High premiums for new licence holders can drop significantly when telematics data proves safe driving.
Second or third vehicle owners
Rarely used cars cost less when insured based on actual kilometres driven.
Fleet managers
Connected car insurance across a fleet provides data on driver performance, reduces claims, and lowers group premiums.
How Driving Data and Telematics Devices Work
Telematics systems collect data using sensors and GPS. Here’s how telematics insurance works at the device level:
Smartphone apps
Your phone’s accelerometer and GPS track speed, braking, acceleration, and phone distraction. No hardware needed.
OBD-II plug-in devices
A small dongle plugs into your car’s diagnostics port for precise data on engine performance and driving patterns.
Built-in eCall modules
New GCC vehicles ship with eCall hardware that can share crash and driving data with insurers (with your consent).
Connected car platforms
Some manufacturers transmit vehicle data directly to insurers through connected car insurance integrations.
The system assigns each trip a score based on speed, braking smoothness, cornering, mileage, and time of day. Scores are updated regularly, and most insurers reset monthly so one bad trip doesn’t permanently affect your rate.
Types of Telematics Insurance Models
The telematics insurance pricing model comes in several forms:
Pay-As-You-Drive (PAYD)
Premium based on kilometres driven. Less driving, lower cost.
Pay-How-You-Drive (PHYD)
Premium based on driving behaviour: speed, braking, acceleration. Pay how you drive insurance rewards safe habits.
Manage-How-You-Drive (MHYD)
Adds real-time coaching and feedback through the app to help you actively improve.
Connected car model
Vehicle data is shared directly from the car’s built-in systems. No separate device or app required.
How Telematics Insurance Policies Work
Here’s how telematics insurance works in practice:
Step 1: Get a quote
PIB Secure compares telematics insurance cost options based on your vehicle, estimated mileage, and driving profile.
Step 2: Activate telematics
Download the insurer’s app or install the plug-in device. Data collection starts immediately.
Step 3: Drive and score
The system tracks your habits and builds your driving score. You can monitor progress in the app.
Step 4: Premium adjusts
Your rate is recalculated at renewal based on real data. Safe driving lowers your cost.
What Is Typically Not Covered in Telematics Insurance
Mechanical breakdown
Engine or transmission failure falls outside motor insurance.
Wear and tear
Gradual deterioration of vehicle components is excluded.
Driving under influence
Claims from incidents while intoxicated are denied.
Unlicensed drivers
If someone without a valid licence drives your car, the claim is void.
Intentional damage
Self-inflicted damage to your vehicle is excluded.
Factors That Affect Telematics Insurance Cost
The telematics insurance pricing model considers:
Driving score
Your behaviour data is the primary factor. Better scores mean lower premiums.
Annual mileage
Fewer kilometres driven reduces your exposure and cost.
Vehicle type
Car value, engine size, and repair costs still play a role.
Driver profile
Age, licence history, and claims record remain part of the calculation.
Time and location of driving
Night driving and high-traffic zones carry higher risk scores.
How Claims Are Handled Using Driving Data
Claims work the same as standard motor insurance, but telematics adds a layer of objective evidence. Speed, braking force, and GPS coordinates at the time of an incident provide a clear record of what happened. This helps resolve disputes faster and supports genuine claims.
Accident reconstruction
Telematics data shows exactly what occurred before, during, and after a collision.
Faster settlement
Objective data reduces back-and-forth between insurers and speeds up payouts.
Fraud prevention
Staged accidents and exaggerated claims are harder to sustain when driving data contradicts the story.
26,100+
motor insurance policies placed
6,000+
claims settled
Why Choose an Advisor-Led Approach for Telematics Insurance
Brokers, not sellers
We work for you, not the insurer. Better telematics insurance coverage, better price.
25+ years in the UAE
We know which insurers offer genuine telematics savings and which are marketing gimmicks.
Claims support
Our team handles the process, including using telematics data to strengthen your claim.
Fleet expertise
We help businesses implement connected car insurance across their vehicles for lower costs.
Multiple insurer access
We compare options across our network for the strongest terms.
20+
insurance partners in our network
Get Telematics Insurance Tailored to Your Driving Profile
Every driver is different. Tell us about your driving habits and we’ll match you with the right telematics insurance, typically within 48 hours.
Frequently Asked Questions
Most insurers use smartphone apps or OBD-II plug-in devices. Newer vehicles with built-in eCall or connected car platforms can share data directly without extra hardware.
Yes. Most telematics apps let you view your trips, driving score, and the specific metrics being tracked. Under the UAE’s PDPL, you can request deletion of your data.
Consistently poor scores may increase your rate at renewal. Most insurers reset scores monthly, so improving your habits quickly reflects in your driver behaviour insurance pricing.
Yes. Young drivers often pay the highest premiums. Pay how you drive insurance lets them prove safe habits and earn lower rates faster than traditional policies allow.
Some policies allow it, with each driver tracked separately. PIB Secure can advise on multi-driver options for your situation.
Most insurers update scores monthly. The telematics insurance pricing model adjusts dynamically based on your latest data, with the full recalculation happening at renewal.
Yes. UAE regulations require opt-in consent and local data storage. Insurers cannot share your data with third parties without your permission.
Yes. You can return to a traditional motor insurance policy at renewal. There’s no lock-in with telematics insurance.
- Pay Less with Data-Driven, Behavior-Based Insurance
- What Telematics Insurance Covers
- Why Drivers Are Switching to Telematics Insurance
- Who Should Consider Telematics Insurance
- How Driving Data and Telematics Devices Work
- Types of Telematics Insurance Models
- How Telematics Insurance Policies Work
- What Is Typically Not Covered in Telematics Insurance
- Factors That Affect Telematics Insurance Cost
- How Claims Are Handled Using Driving Data
- Why Choose an Advisor-Led Approach for Telematics Insurance
- Get Telematics Insurance Tailored to Your Driving Profile
- Frequently Asked Questions