How does Drivewise know who is driving?

Allstate offers pay-per-mile insurance through a program called Milewise. Allstate’s pay-per-mile insurance program works by charging customers a base amount plus a small fee per mile driven, making it a good choice for low-mileage drivers. For instance, Allstate provides an example rate of $1.50 per day plus 6¢ per mile.

How Allstate Pay-per-Mile Works

Milewise has a mileage cap of 250 miles in some states, which means that drivers won’t be charged for any miles beyond this limit. As a result, long road trips will only cost up to a certain maximum amount. Unlike most insurance premiums, Milewise charges policyholders immediately after they take a trip, so drivers must keep a certain balance in their Milewise account.

Allstate Milewise Tracking and Availability

Milewise is available in 18 states, including Florida, Texas, and New Jersey. Milewise tracks mileage using a device that plugs into your car underneath the dashboard, which is compatible with most cars from 1996 or later.

Keep in mind that Milewise is different from Drivewise. Drivewise is a usage-based insurance program from Allstate that gives policyholders cashback on a traditional policy based on driving habits such as speed, braking, and the time of day that you drive.

You can lower your Allstate car insurance costs by taking advantage of Allstate discounts, opting for a higher deductible, and reducing your coverage, among other things. Allstate considers a variety of factors when calculating your premium, though some – like your age and location – are out of your control. Fortunately, you can take steps to influence other factors in order to lower your rate.... read full answer

How to Lower the Cost of Car Insurance from Allstate

Use Allstate’s auto insurance discounts

Allstate offers a wide variety of discounts that can help you lower your overall car insurance bill. For example, drivers can get a discount of up to 20% if their policy covers a college or high school student who maintains at least a "B-" average. Or you can save up to 25% on your premium if you have multiple policies with Allstate.

Raise your car insurance deductible

Opting for a higher deductible on any of your insurance policies from Allstate can lower your premium. But if you decide to go this route, it’s important that you choose a deductible amount that you can still afford if you suddenly need to file a claim. Otherwise, you might not be able to use the coverage that you have.

Reduce your car insurance coverage

Most states require a certain amount of bodily injury liability and property damage liability coverage. But there are other coverage options (like comprehensive, collision, personal injury protection, and uninsured motorist) that you may not have to purchase, depending on your state. Less coverage usually means lower premiums, but it could also lead to higher costs in the long run, so it’s important to approach coverage decisions with caution.

Improve your driving record

Practicing safe driving habits and avoiding moving violations can help you qualify for lower Allstate insurance rates long-term. You may also be able to attend traffic school in order to remove a violation or points from your record, depending on your state.

Build and improve your credit

Because your credit history is correlated with your likelihood of filing an insurance claim, Allstate uses your credit data to calculate your premium in states where it is legal. As a result, having good credit makes you less of an insurance risk, which will reduce your rates over time.

Drive less

Whether you can shorten your commute to work, use more public transportation, or even ride a bicycle more, driving fewer miles each year could lower your Allstate premium.

Drive an insurance-friendly car

Expensive cars, sports cars, and cars with high rates of theft are considered to be riskier to insure than cheaper, more practical vehicles. Before you buy a new car, get a new quote from Allstate to see how it will affect your rate. If the cost is out of your budget, then you should probably choose a different car.

Sign up for Drivewise

Drivewise, the Allstate telematics program rewards you for good driving with a discounted premium. Specifically, Drivewise tracks acceleration, braking, and the time of day that you drive. By using Drivewise, drivers can save 10% on their premium just for signing up and earn a rebate of up to 25% every six months.

Finally, if you’re still struggling to afford your Allstate policy, you should consider switching insurers. Even if you’re not actively looking for a new policy, it’s generally a good idea to compare quotes from three different companies every 6-12 months. To learn more, check out WalletHub’s guide to switching car insurance companies.

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.... read full answer

Your insurance company will provide you a “black box” device that attaches to your car, or an app that you can download to your phone. Both the device and the app then track your driving behavior – including speed, breaking and acceleration, among other factors. The black box device has a SIM card that records your driving information and sends that data back to the insurance company. The phone app uses your car’s GPS capabilities to record data on your driving behavior and sends it back to your insurer.

The company then uses this data to analyze how safe your driving behavior is and calculates your insurance premium accordingly. The safer and less you drive, the more you save.