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.

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.

Most Popular

Dying Careers You May Want to Steer Clear Of
careers

Dying Careers You May Want to Steer Clear Of

It’s tough to change, but your job could depend on it. Be flexible in your career goals – and talk with your kids about their own aspirations, because…
September 13, 2021
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
7 Best Commodity Stocks to Play the Coming Boom
commodities

7 Best Commodity Stocks to Play the Coming Boom

These seven commodity stocks are poised to take advantage of a unique confluence of events. Just mind the volatility.
September 8, 2021

Recommended

After Hurricanes, Beware of Flooded Cars for Sale
Buying & Leasing a Car

After Hurricanes, Beware of Flooded Cars for Sale

Hurricane Ida may have passed, but there's a chance the used car you have your eye on could have been damaged by it. Here’s what to watch out for.
September 3, 2021
Your Tree, Your Neighbor’s Property: Whose Insurance Pays?
insurance

Your Tree, Your Neighbor’s Property: Whose Insurance Pays?

And how to be a good neighbor when your tree drops by uninvited.
September 2, 2021
10 Things to Know About Hurricane Insurance Claims
Becoming a Homeowner

10 Things to Know About Hurricane Insurance Claims

Know what's covered, what isn't, and how to make the most of your policy if you need to file a claim.
August 30, 2021
How Much Umbrella Insurance Do I Need?
umbrella insurance

How Much Umbrella Insurance Do I Need?

Having too much liability insurance is better than having too little. Use our calculator to determine how much umbrella coverage is right for you.
August 3, 2021