Does American Family use telematics? This question is about American Family Insurance

Does American Family use telematics?

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This question is about American Family Insurance

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@WalletHub • 07/26/21 This answer was first published on 07/26/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Yes, American Family uses telematics through KnowYourDrive, a program that tracks a customer’s driving habits using the mobile app. Customers can sign-up for KnowYourDrive and receive a discount of up to 20% if they consistently practice safe driving.

What American Family Telematics Tracks

Miles driven
Speed
Acceleration
Braking
Distracted driving
City driving
The time of day that you drive

In order to use KnowYourDrive, drivers need to enroll in the program and install the mobile app, which will automatically log a trip when it detects driving activity. After you start logging trips, the discount will be applied when you renew your policy. You will be able to keep your discount as long as you continue using the program. If you practice bad driving habits while using KnowYourDrive, American Family will not raise your base premium. But you probably won't get much of a discount, if any. KnowYourDrive is currently available in 19 states.

To learn more, check out WalletHub’s guide to usage-based insurance.

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How does telematics insurance work?

Telematics insurance is a type of car insurance that bases your insurance rate on how far and how safely you drive. Insurance companies use telematics to track your driving distances and behavior, and then use that data to assess how much risk the way you drive might pose. This risk assessment is then used to calculate your insurance premium.

Your insurance company will provide you a “black box” device that attaches to...

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How does pay-as-you-go car insurance work?

Pay-as-you-go car insurance calculates a policyholder’s premium based on how many miles they drive each month. The policyholder’s mileage is tracked through a mobile app or device plugged into the vehicle, and customers who drive fewer miles pay a lower rate. Companies that offer pay-as-you-go car insurance, which can also be referred to as pay-per-mile or usage-based coverage, usually charge a monthly base rate and then add a fee for each mile driven.

Pay-as-You-Go Car...

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Does American Family offer a low mileage discount?

Yes, American Family offers a low mileage discount. The American Family low mileage discount is meant to reward customers who drive fewer miles than average and will save policyholders money on their premium as long as they drive less than 7,500 miles per year. American Family does not disclose the amount of the discount, though.

In addition to the low mileage discount, American Family offers good student, good driving and paperless discounts, among others.

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