Car insurance in 2025 continues to evolve with advancements in technology, regulatory changes, and shifting consumer needs. Here's a breakdown of key aspects to help you understand car insurance in 2025:

1. Usage-Based Insurance (UBI) Dominates

• Telematics and IoT: Most insurers now rely on telematics devices or smartphone apps to monitor driving behavior. Factors like speed, braking, acceleration, and mileage are tracked in real-time.

• Personalized Premiums: Drivers are charged based on their actual driving habits rather than traditional factors like age or location. Safe drivers benefit from significantly lower premiums.

• Pay-As-You-Drive (PAYD): Policies are increasingly tailored to how much you drive, making insurance more affordable for low-mileage drivers.