Car Insurance with Telematics

Is usage-based car insurance the way to go, or is it cheaper to get traditional car insurance without telematics?

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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. 

 

Pros of telematics in auto insurance:

  • Good drivers can receive cheaper rates based on their safe driving habits via usage-based insurance (UBI).
  • Usage-based plans partially circumvent the potential unfairness of auto insurers pricing quotes based on non-driving factors like credit score or location by taking into consideration relevant driving-related data.
  • You may be incentivized to use your car less frequently, alleviating wear and tear, helping the environment and reducing the likelihood of a collision. 

 

Cons of telematics in auto insurance:

  • Drivers with long commutes may not enjoy the benefit of lower rates from usage-based insurance.
  • If your schedule requires you to drive at night, you could face higher-than-expected insurance rates. 

 

Best telematics insurance programs

Below we take an in-depth look at usage-based car insurance, reviewing the telematics programs of popular insurance companies and listing typical usage-based insurance rate savings on a state-by-state basis

 

Popular telematics auto insurance programs:

 


 

Progressive Snapshot

progressive logo

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.

 

Progressive Snapshot telematics program: average six-month rates

Average PremiumAverage Premium with Snapshot
$809$752
 

If your initial telematics testing shows any risky tendencies on the road, your premium could increase. Find more information relating to Progressive, including how to find a quote, in The Zebra's review of Progressive.

 

Where is Progressive Snapshot available? 

Telematics ProgramStates Available
Progressive Snapshot

AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

Learn more about how progressive snapshot varies in different U.S. states. 

 


 

Allstate2

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.

 

Allstate Drivewise telematics program: average six-month rates

Average PremiumAverage Premium with Drivewise
$1,011$996


Allstate Milewise

A newer addition to Allstate’s telematics offerings, the company’s Milewise program is designed to offer savings to low-mileage drivers. Unlike most other types of car insurance, this pay-per-mile program sets a daily rate and allows you to pay for every mile that you drive, as tracked by a plug-in device.

 

Where is Allstate Milewise available?

Telematics ProgramStates Available
Allstate Milewise

AZ, DC, DE, FL, ID, IL, IN, MD, MA, NJ, OH, OR, PA, TX, VA, WA, WV

 

For more information, consult our full review of Allstate insurance


 

Farmers Signal

farmers icon

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.

 

Where is Farmers Signal available? 

Telematics ProgramStates Available
Farmers Signal

AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

Farmers FairMile

FairMile is Farmer's newest telematics program designed with business owners in mind.  Available in Washington, FairMile is a usage-based program like many others, but is uniquely dedicated to the small business community and those who drive vehicles intended for business use. With this program, premiums are based on miles driven in each business vehicle insured by a Farmers commercial auto policy. Each month, premiums are adjusted to reflect actual miles driven compared to the mileage amount estimated at inception. The FairMile program includes a smartphone app and plug-in device for each business vehicle. This program is best for small businesses with seasonal or cyclical activity, like florists and landscapers, or for business where driving is infrequent.

Learn more about Farmers by reading our review.

 


 

Esurance DriveSense

esurance logo

Esurance provides an immediate discount to its DriveSense users: 10% off premiums going forward. Esurance uses the same data as do 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.

 

Where is Esurance DriveSense available? 

Telematics ProgramStates Available
Esurance DriveSense

AL, AZ, AR, CO, CT, GA, IA, ID, IL, KS, KY, LA, ME, MD, MI, MN, MO, ND, NE, NJ, NM, NV, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WV

 

See our review and get an Esurance quote.

 


 

Nationwide SmartRide

nationwide icon

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.

 

Nationwide SmartRide telematics program: average six-month rates

Average PremiumAverage Premium with SmartRide
$714$696


Nationwide Smartmiles

Designed for low mileage drivers, Smartmiles is Nationwide's pay-per-mile program. Much like other mileage-based telematics car insurance, your premium is made up of a base rate and a variable rate (the cost per mile), so what you pay month-to-month can vary depending on your driving habits.

 

Where are Nationwide SmartRide and Smartmiles available? 

Telematics ProgramStates Available
Nationwide SmartRide

AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

Nationwide Smartmiles

AR, AZ, CO, CT, DC, FL, GA, IA, ID, IL, IN, KS, KY, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NM, NV, OH, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY

See our review of Nationwide and get a quote.


 

Liberty Mutual RightTrack

liberty-mutual-logo

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. 

 

Liberty Mutual RightTrack telematics program: typical six-month rates

Average PremiumAverage Premium with RightTrack
$640$448 to $608

 

Where is Liberty Mutual RightTrack available?

Telematics ProgramStates Available
RightTrack Plug-inDC, FL, IL, MA, MO, NJ, NV, NY, RI, SC, VA
RightTrack TagAL, AZ, CT, IN, MI, NH, NM, OK, OR, PA, TX
RightTrack MobileAR, CO, DE, GA, IA, ID, KS, KY, LA, MD, ME, MN, MS, NE, OH, TN, WI, UT, VT, WV

 

See our review of Liberty Mutual and get a quote.

 


 

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.

 

State Farm Drive Safe & Save telematics program: average six-month premiums

Average PremiumAverage Premium with Drive Safe & Save
$647$608

 

Where is State Farm Drive Safe & Save available?

Telematics ProgramStates Available
State Farm Drive Safe & Save

AL, AK, AZ, AR, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, NY, OH, OK, OR, PA, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

Learn more about State Farm by reading our review.

 


 

GEICO DriveEasy

geico

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.

 

Where is Geico DriveEasy available? 

Telematics ProgramStates Available
Geico DriveEasy

AZ, CO, CT, FL, IL, IN, KY, LA, MD, NJ, NM, NC, OH, OK, OR, PA, TX, VA, WI 

 


 

USAA SafePilot

USAA horizontal logo

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. 

 

USAA SafePilot telematics program: average six-month rate comparison

Average PremiumAverage Premium with SafePilot
$545$537
 

Where is USAA Safepilot available?

Telematics ProgramStates Available
USAA SafePilot

AL, AR, AZ, IA, ID, KY, MD, MO, MT, NM, OH, TN, TX, VA, SD, OR

Learn more in our review of USAA.

 


 

Metromile per-mile insurance

Metromile logo

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.

 

Where is Metromile per-mile available?

Telematics ProgramStates Available
Metromile per-mile

AZ, CA, IL, NJ, OR, PA, VA, WA 

 

While driving less can help you save more with Metromile, traditional rating factors such as your vehicle type, age, driving history and credit score are utilized as well. 

Have more questions? View our detailed analysis of Metromile's telematics app and read our full review of Metromile to find out about their policies.

 


 

Root car insurance

root logo

Root uses an app via your iPhone or Android to create your premium after you have taken a test drive. The more safely you drive, the lower your rates will be. Root bases your premium on how you drive, not your age, credit score, or any non-driving rating factors commonly used by standard insurance companies.

Like other telematics programs, Root uses the following driving behaviors to calculate your premium:

  • How you brake
  • Speed of turns
  • Mileage
  • Time of day in which you drive (with late-night driving being less favorable)

In their eyes, the only way to see if you’re getting a better insurance rate is to take a test drive and get a quote. In theory, if you’re a safe driver but your insurance rate is being penalized by non-driving factors, this might be a good opportunity for you to save money.

 

Where is Root Insurance available?

Telematics ProgramStates Available
Root

AZ, AR, CA, CO, CT, DE, GA, IL, IN, IA, KY, LA, MD, MS, MO, MT, NE, NV, NM, ND, OH, OK, OR, PA, SC, TN, TX, UT, VA, WV

Want to learn more? Check out our in-depth look at Root's telematics program and our full review of Root Insurance.

 


 

Noblr car insurance

Another telematics-driven option for auto insurance is Noblr, which calculates part of your premium based on driving data collected by a smartphone app. Your total premium is the sum of two rates — a fixed monthly rate, determined by some of the usual rating factors insurers use, like your age, location, and vehicle, and a monthly variable rate, which is provided by the app.

The Noblr app measures how safe of a driver you are by scoring your driving abilities using these metrics:

  • Smoothness: the nature of your braking, acceleration and cornering
  • Focus: how you use your phone while driving
  • Road choice: using highways over local roads is considered to be safer
  • Time of day: driving at night is riskier than driving during the day
  • Mileage: how far you drive

 

Where is Noblr car insurance available?

Telematics ProgramStates Available
Noblr

AZ, CO, LA, MD, NM, OH, PA, TX

 

Need more details?  See our deep dive into Noblr's telematics app and our comprehensive review of Noblr.


American Family MilesMyWay

AmFam logo

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.

 

Telematics ProgramStates Available
American Family MilesMyWay

AZ, CO, GA, ID, IL, IN, IA, KS, MN, MO, NE, NV, ND, OH, OR, SD, UT, WA, WI

American Family KnowYourDrive

AZ, CO, GA, ID, IL, IN, IA, KS, MN, MO, NE, NV, ND, OH, OR, SD, UT, WA, WI

 

Learn more about American Family Insurance by reading our review

 


Is telematics car insurance worth it?


This is a tricky question. Participation in most car insurance telematics programs is free — including the use of the tracking device. If you’re considering participation in a telematics program, the big question is: will my car insurance be cheaper without telematics? That comes down to whether you drive safely or not.

On the other hand, telematics can prevent you from being penalized by rating factors that are out of your hands. Or example, if you're a young driver with poor credit, you'll pay a lot for car insurance by default. Telematics — along with your good driving — may help you overcome these rating factors to receive a more favorable rate.

The discounts offered by insurance companies depend on their calculations and your driving performance. If you find you’re still paying too much for car insurance even with telematics, you might be with the wrong company. It's a good idea to reassess your car insurance situation once every six months. Enter your ZIP code below to see how much you could save.

 

See rates from top insurance companies quickly and easily today.

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Ross Martin
Ross MartinManager, Content Quality

As a licensed insurance agent, Ross researches and writes insurance content intended to help users make informed decisions.

Ross's background is in writing and education. He holds a master's degree from Royal Holloway, University of London.

Ross's work has been cited by The New York Times, Investopedia, The Simple DollarThe BalanceCar and Driver and Fox Business. He has been quoted by CNET, I Drive Safely and Kin Insurance

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