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Usage-based car insurance programs can cut premiums by up to $100 a month
The story notes that some programs offer discounts of up to 40% and can detect crashes, while other insurers may raise renewal rates for high-risk driving.
Usage-based car insurance, also called telematics or tracking, lets insurers monitor driving behavior in exchange for discounts based on how safely someone drives, according to Clearsurance.com, which reviewed leading providers.
The roundup says Safeco is rated #1 for usage-based programs, with potential savings of up to $100 a month for customers who opt into monitoring, while Farmers’ Signal can reward drivers by up to $100. It also highlights Allstate’s program, which offers discounts up to 40% for lower-risk driving behaviors, and Drivewise, which is described as detecting crashes and dialing 911.
Other insurers cited include Liberty Mutual, which offers discounts of up to 30% for low-risk driving habits, and Progressive Snapshot, which the story says pioneered tracking and can help drivers save up to 30%. The article also warns that drivers with high-risk behaviors may see rates increase at renewal with some providers, even as most others promise not to raise rates due to monitored high-risk behavior.
The piece emphasizes that the starting premium matters as much as the discount and illustrates the difference with two quoted examples, where a higher discount on a $300 quote leads to a lower monthly cost than a smaller discount on a $200 quote. It adds that discounts can sometimes be stacked, including bundling alone that it says can save 25%, plus other ways to reduce premiums such as adjusting deductibles or coverage levels.