With a GPS system attached to each insured vehicle, insurance companies are able to charge “usage-based insurance rates,” depending on how much, when, and where the insured vehicle is driven. Autograph, a firm that was awarded a U.S. patent in 2001, was shown to save policy holders in Houston an average of 25% of what they were previously paying. Why are usage-based insurance rates lower than flat-rate insurance fees? Give two separate reasons.