US-based auto insurer Progressive Insurance has signed a licensing deal with United Services Automobile Association (USAA) for intellectual property associated with usage-based car insurance programs.

Progressive president of personal lines group John Sauerland said, "We have found that key driving behaviors predict the likelihood of a claim far better than traditional insurance rating variables alone."

"As insurers realize the benefits UBI offers consumers, it’s critical they deliver programs that reflect responsible intellectual property practices, which includes licensing the appropriate IP," added Sauerland.

In December 2012, Progressive revealed its licensing program, under which licensees will not rate insurance based on its customers’ driving habits prior to 1 April 2015.

Progressive’s current implementation of UBI, Snapshot is currently available in 44 US states and the District of Columbia.