  Intelligent Transportation Systems (ITS) cover a variety of services related
to topics such as traffic control and safe driving, among others. In the
context of car insurance, a recent application for ITS is known as Usage-Based
Insurance (UBI). UBI refers to car insurance policies that enable insurance
companies to collect individual driving data using a telematics device.
Collected data is analysed and used to offer individual discounts based on
driving behaviour and to provide feedback on driving performance. Although
there are plenty of advertising materials about the benefits of UBI, the user
acceptance and the usability of UBI systems have not received research
attention so far. To this end, we conduct two user studies: semi-structured
interviews with UBI users and a qualitative analysis of 186 customer inquiries
from a web forum of a German insurance company. We find that under certain
circumstances, UBI provokes dangerous driving behaviour. These situations could
be mitigated by making UBI transparent and the feedback customisable by
drivers. Moreover, the country driving conditions, the policy conditions, and
the perceived driving style influence UBI acceptance.
