Usage-based insurance (UBI), also known as pay as you drive (PAYD) and pay how you drive (PHYD) and mile-based auto insurance, is an increasingly common ask of the carriers of vehicle insurance. The costs of UBI are dependent upon the type of vehicle used, measured against time, distance, behavior and place. A UBI Policy has a base premium component that is based on usual policy characteristics such as vehicle, drivers etc. In addition to the base premium, the customer is then billed on a periodic basis that is based on trips undertaken in the period. UBI has two components to it: