Yes, Allstate uses telematics through Drivewise, its usage-based program, and Milewise, its mileage-based program. Milewise only measures a driver’s mileage in order to calculate a daily rate for their policy, while Drivewise tracks several habits and rewards good drivers with a rebate of up to 25%.
What Allstate Telematics Tracks
- The time of day that you drive
In order to use Drivewise, drivers need to plug the tracking device into their vehicle's OBD port or download the Allstate mobile app, which will automatically log trips when it detects driving activity. After you start logging trips, the rebate will be applied every six months. Because Drivewise gives drivers a rebate instead of a discount, your rate will not go up if you practice bad driving habits while enrolled in the program. Currently, Drivewise is available in all states except California.
Milewise, on the other hand, works a bit differently. Instead of offering a rebate, Allstate uses the program to calculate a driver’s payment based on their daily mileage. Customers are charged a small base premium, and then a fee for each mile that they drive, up to 250 miles per day in some states. As a result, Milewise is a good choice for policyholders who don’t drive often.
To learn more, check out WalletHub’s guide to usage-based insurance.
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