The future of usage-based insurance (UBI) will look nothing like its past. Soon, the notion of a “plug in” device for a proprietary, carrier-based program—such as Progressive’s Snapshot or Allstate’s Drivewise—may seem as quaint as a flip phone. In fact, dongles are already being replaced by smartphone UBI apps.

We are, in short, moving into an era of democratization for UBI. “Driving data bureaus” (similar to credit bureaus) are emerging. These bureaus will develop and sell predictive “portable driving scores” to insurers and others with permissible purpose. Vehicle owners will have control over the capture and sharing of their data, along with review and dispute ability.