7 insurance companies that offer telematics programs
While car insurance companies can still use your credit with a telematics program, it can help reduce your costs. One study by the Insurance Research Council found that most people who enroll in a telematics driving program save on car insurance.[3]
If you’re looking for ways to offset poor credit when shopping for car insurance, here are a few companies that offer telematics programs to keep in mind.
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1. Allstate: Drivewise
Average monthly premium: $164 full coverage, $74 liability only
Allstate offers safe driving discounts through its telematics program called Drivewise.[4] This program offers easy enrollment through a mobile app that tracks speed, braking events, and other indicators of safe driving. You receive a policy discount for enrolling in Drivewise, plus fresh rewards every six months based on your driving habits.
2. Nationwide: SmartRide and SmartMiles
Average monthly premium: $144 full coverage, $65 liability only
Nationwide offers two telematics programs: SmartRide and SmartMiles.[5] [6] SmartRide tracks driving habits and provides an initial discount of 15% for signing up, plus up to 40% off over time for safe driving. SmartMiles is for people who drive less than average. Rates consist of a fixed base rate plus a variable rate according to how many miles you put on your car each month.
Pros SmartRide will never raise your rates, even for unsafe driving.
SmartMiles allows a road trip exception, so any amount driven over 250 miles per day won’t count toward your rate.
ConsSmartRide measures miles driven in a trip, and long trips can dock your discount.
SmartMiles isn’t available in Alaska, Hawaii, Louisiana, North Carolina, New York, or Oklahoma.
3. GEICO: DriveEasy
Average monthly premium: $137 full coverage, $62 liability only
With GEICO’s DriveEasy program, you can download a mobile app that monitors your driving behaviors to determine personalized insurance rates.[7] DriveEasy monitors behaviors like distracted driving, hard braking, smoothness, distance driven, time of day, weather, and more. The mobile app shows you your score over time, which makes it easy to see if the program is helping your rates or not.
ConsUnsafe driving behaviors can raise your rates.
GEICO factors weather into your score, and driving in non-ideal weather is considered risky.
4. Progressive: Snapshot
Average monthly premium: $166 full coverage, $95 liability only
Progressive’s Snapshot program monitors driving behaviors to reward safe drivers with lower insurance rates.[8] While some people can see their rates rise for unsafe driving, this isn’t typical. According to Progressive, only 2 out of 10 drivers see their rates increase. Drivers who save see an average of $231 yearly off their premiums.
ConsYour insurance rates could go up if your driving is considered unsafe.
If you opt out of the program after 45 days, you can face a surcharge at policy renewal, and Progressive can still use the collected data to influence rates.
5. Liberty Mutual: RightTrack
Average monthly premium: $305 full coverage, $166 liability only
With Liberty Mutual’s RightTrack program, drivers who enroll receive a 10% policy discount instantly.[9] After using the program to monitor your driving behaviors for 90 days, you can receive additional savings of up to 30% off your premiums. However, if the discount you receive after completing the RightTrack program is less than the initial 10% discount, you'll pay the difference.
Pros If you change or add vehicles, your RightTrack score automatically applies to the new vehicles.
Most states guarantee a discount at the end of RightTrack’s review period (90 days).
ConsRisky drivers may see an increase in their insurance rates.
Depending on your state, rush-hour driving might negatively affect your score.
6. State Farm: Drive Safe & Save and Steer Clear
Average monthly premium: $181 full coverage, $82 liability only
State Farm offers a few telematics programs. With Drive Safe & Save, you use a mobile app and Bluetooth device to monitor driving behaviors like quick acceleration, hard braking, speeding, distracted driving, and fast turns.[10] For young adults and teen drivers, State Farm offers the Steer Clear program.[11] Drivers younger than 25 can save on insurance by completing training courses and driving safely.
ConsDrive Safe & Save isn’t available in California, Massachusetts, or Rhode Island.
Drivers with an at-fault accident or ticket in the last three years aren’t eligible for Steer Clear.
7. USAA: SafePilot
Average monthly premium: $120 full coverage, $55 liability only
The USAA SafePilot program allows safe drivers to earn up to 30% off their premiums.[12] A mobile app collects data on harsh braking, time of day, phone handling, and other driving behaviors to create a safe driving score. If the score makes you eligible for a discount, you can apply it at policy renewal. Scores also reset at policy renewals to give drivers a fresh start.
ConsHands-free calls through your Bluetooth system will negatively affect your score.
Phone-handling infractions will negatively affect your score, even if the passenger touches the phone.
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