Advertisement
insurance

How Tracking Rewards Good Drivers

A tracking device on your car reveals how you drive. Good drivers are rewarded with policy discounts.

Question:

My insurer offers a data-tracking program that gives a discount based on my driving habits. Is it worthwhile to sign up?

Answer: If you tend to keep your annual mileage low and have safe driving habits, enrolling in a data-tracking program can be a good deal. Several insurers offer these programs, including Allstate, Progressive and State Farm. With State Farm’s Drive Safe & Save, drivers who log the fewest miles and have the best driving habits can save up to 50% on premiums, though the average discount runs 10% to 15%, says State Farm’s Scott Bruns. The programs are voluntary, and specifics vary by insurer and state. You may also get a discount just for signing up. Progressive offers an average discount of $25 if you sign up for its Snapshot program.

To relay information to your insurer, you use an app on your smartphone or plug a device into your car that tracks how many miles you drive and how often you drive late at night, as well as such potentially dangerous driving habits as braking hard and accelerating rapidly. You can review your results online so that you can work on improving your habits before your rate is set each term.

Advertisement - Article continues below

The Allstate and State Farm programs do not currently penalize you for risky driving habits. But Progressive has raised premiums on about two out of 10 tracked drivers who display risky behavior behind the wheel.

Advertisement
Advertisement

Most Popular

11 Dividend-Paying Stocks You Should Think Twice About
dividend stocks

11 Dividend-Paying Stocks You Should Think Twice About

Dividend-paying stocks often can be a store of safety, but 2020 has been difficult on income equities. These 11 picks look like shaky plays despite th…
September 21, 2020
Medicare Basics: 11 Things You Need to Know
Medicare

Medicare Basics: 11 Things You Need to Know

There's Medicare Part A, Part B, Part D, medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare --…
September 16, 2020
Where You Should Invest Now
investing

Where You Should Invest Now

Kiplinger.com senior investing editor Kyle Woodley joins our Your Money's Worth podcast to answer investor questions about tech stocks, the election a…
September 22, 2020

Recommended

Insurance for Long-Term Care at Home
retirement

Insurance for Long-Term Care at Home

In the wake of COVID-wracked nursing homes, increasingly more people are looking at options to age in place with long-term care insurance.
September 17, 2020
The Right Fit Car for Older Drivers
Buying & Leasing a Car

The Right Fit Car for Older Drivers

Anticipate how changes in lifestyle and health might affect the kind of vehicle you will need over time.
August 26, 2020
The Insurance Company Denied My Claim. What Should I Do?
insurance

The Insurance Company Denied My Claim. What Should I Do?

A lawyer specializing in insurance bad faith law explains why this happens, and outlines how to fight back.
August 6, 2020
Time for an Insurance Review
Coronavirus and Your Money

Time for an Insurance Review

You may need to update your policies in light of COVID-19.
July 30, 2020