Car Insurance with Telematics

What is telematics in car insurance?

Telematics-powered auto insurance is a form of policy in which insurance companies rely on in-car tracking devices to monitor your driving habits and tendencies. These devices track your vehicle's speed, mileage, total driving time and other factors to help determine the policyholder's car insurance premiums. These usage-based insurance policies usually come with a mobile app to help you easily access real-time data relevant to your rate. 

Progressive Snapshot

Progressive’s Snapshot telematics program is relatively typical among major insurers. Progressive uses a telematics device to monitor the times of day you drive, sudden changes in speed — like hard braking or rapid acceleration — and your mileage to better predict your driving habits and create your premium. You’ll need to have this telematics data device in your vehicle for one standard six-month policy period before the collected data can revise your insurance premium. According to our study (full methodology), a good driver can save an average of $57 every six months by using Snapshot.

Allstate Drivewise

Allstate’s primary telematics program — called Drivewise — provides personalized driving feedback after each drive, as well as discounts for safe driving. Upon signing up for Allstate Drivewise, you receive 3% cashback (presumably on your premium going forward). Within the app, you can see your last 100 trips, your rewards, and your driving behavior breakdown. Drivewise car insurance premiums are calculated based on a few data points: your “safe speed” — under 80 miles per hour — safe braking — minimal abrupt stops — and time of day. You can participate in the Drivewise program without having an Allstate car insurance policy. Within the app, you’re able to select “non-customer" to view your telematics-generated driving data.

Farmers Signal

Signal uses a smartphone app to measure your driving behavior. Factors like hard braking, excessive speeding, time of day and mileage driven determine your discount. Farmers claims policyholders can earn a 5% discount on their premium by enrolling, with a discount of up to 15% when it comes time to renew the policy. Young drivers under the age of 25 could also be eligible for a 10% discount.

Esurance DriveSense

Esurance provides an immediate discount to its DriveSense users: 10% off premiums going forward. Esurance uses the same data as other companies to generate your new premium, including speed, braking, mileage, and time of day. As with Progressive’s SnapShot program, your costs may fluctuate each policy period as your driving changes. The more safely you drive while using telematics technology, the lower your premium will be. Esurance doesn’t advertise an annual rate of savings.

Nationwide SmartRide

Nationwide's SmartRide telematics program provides an immediate 10% discount at signup. After your next policy renewal, your premium will be calculated based on how safely you drive. While the amount you'll save may vary based on your driving data, the discount maxes out at 40%. You'll need to download the Nationwide SmartRide app or have a compatible telematics box in your vehicle to be eligible for a discount. Unlike some other telematics-powered insurance programs, SmartRide uses idle time to calculate your premium, in addition to nighttime driving, hard braking and acceleration, and mileage. Nationwide considers idle time — time spent stopped in traffic — an indicator of risk that could dent your discount.

Liberty Mutual RightTrack

Liberty Mutual’s telematics program, RightTrack, uses a plugin device that you need to install 30 days prior to the start of your next policy. After 90 days, your safe driving “score” is determined using the data collected by the app. Liberty Mutual advertises telematics savings of between 5% to 30% on your policy for safe drivers. Like other policies, RightTrack monitors your braking, acceleration, nighttime driving, and how many miles you drive.

RightTrack uses a plug-in telematics box, shipped to you with specific instructions. Liberty Mutual also offers "tag" and "mobile" RightTrack options for those in locations where the plug-in box is not authorized. 

State Farm Drive Safe & Save

State Farm’s telematics program — Drive Safe & Save — uses either your OnStar device or a mobile device (paired with a Bluetooth device provided by State Farm) to calculate your premium. State Farm’s program weighs mileage more heavily than other driving characteristics, although those are still taken into consideration.

State Farm advertises savings of up to 50% through its Drive Safe & Save program. However, with its emphasis on low-mileage driving, State Farm telematics may not be a good fit for drivers covering more than 7,500 miles per year.

GEICO DriveEasy

GEICO DriveEasy uses your smartphone to help you become a better driver. To participate, download and log into the DriveEasy app. The app uses your phone’s sensors and GPS location to collect information about driving habits such as hard braking, speeding, and phone use while driving.

Other factors — like the time of day at which you drive and your overall mileage — are counted as well. The app’s movement-tracking technology can even determine whether or not you are the driver or a passenger. With the collected data, GEICO will give you an overall driving score and tips to help you improve your driving.

USAA SafePilot

USAA's telematics program encourages safe driving habits by awarding a discount based on a driving score, which is calculated by a smartphone app. SmartPilot factors in things like location, time of day, harsh braking, and how often you use your mobile device while driving. If multiple drivers are on the insurance policy, the discount will be based on the average behaviors of all listed drivers.

A 5% discount is offered for enrolling in USAA's SafePilot telematics program. The discount calculated using your driving data will be applied when the policy is up for renewal. SafePilot was initially made available in only a handful of states, but USAA has prioritized its rollout in the "majority" of U.S. states, beginning in 2021. 

Metromile per-mile insurance

Metromile offers a unique form of car insurance. While it still uses telematics and belongs in the family of usage-based car insurance, it’s closer to pay-as-you-go or pay-per-mile car insurance. Metromile assigns you a base rate and calculates any additional premiums based on how many miles you drive. If your base rate is $29 and you drive 450 miles in a month at $0.06 per mile, your monthly rate would be $56.

American Family MilesMyWay

American Family Insurance telematics program is called MilesMyWay. This is a unique, pay-as-you-drive program that rewards drivers for driving less; it is mileage-based but with a twist. Drivers are not penalized for driving more, just rewarded for driving less. The goal is to drive less than 8,000 miles per year or 667 miles per month. Policyholders can save up to 25% of their monthly premiums. The main difference between MilesMyWay and other mileage-based programs is that policyholders know the maximum amount they will be responsible for paying every month. Rewards accrued by app usage lower premiums based on the miles driven. Mileage is measured by a smartphone app and a small dashboard device you connect via Bluetooth. 

KnowYourDrive is American Family’s original telematics program. This usage-based program is also used with a smartphone app, but rather than tracking mileage, the telematics measure the safety of your driving. By downloading the app, American Family offers a 10% discount just for signing up. The app tracks your driving behaviors, giving larger discounts for safe drivers and fluctuating based on behaviors like frequent hard acceleration or braking, late-night trips, and distracted driving. Your premium will never increase due to participation in KnowYourDrive, and the discount is applied at the time of renewal.