Does Nationwide use telematics? This question is about Nationwide

Does Nationwide use telematics?

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This question is about Nationwide

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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, Nationwide uses telematics through SmartRide, its usage-based program, and SmartMiles, its mileage-based program. SmartMiles only measures a driver’s mileage in order to calculate a daily rate for their policy, while SmartRide tracks several habits and rewards good drivers with a discount of up to 40%.

What Nationwide Telematics Tracks

Miles driven
Braking
Acceleration
Idle time
The time of day that you drive

In order to use SmartRide, drivers need to put the plug-in device into their vehicle's OBD port or download the SmartRide mobile app. Once the app is activated, it will automatically log trips when it detects driving activity After four to six months of logging trips, the discount will be applied for the life of your policy. If you practice bad driving habits while using SmartRide, Nationwide will not raise your base premium. But you probably won't get much of a discount, if any. SmartRide is currently available in 41 states.

SmartMiles, on the other hand, works a bit differently. Instead of offering a discount, Nationwide 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. As a result, SmartMiles is a good choice for policyholders who don’t drive often.

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

Answer Question

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.… 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.

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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 … read full answer usage-based coverage, usually charge a monthly base rate and then add a fee for each mile driven.

Pay-as-You-Go Car Insurance Options

Nationwide SmartMiles

Allstate Milewise

Metromile

Other major insurers offer usage-based programs that give drivers a discounted rate based on various driving habits, including miles driven. If your annual mileage is lower than the average driver, you may also qualify for a low-mileage discount.

Who Should Consider Pay-as-You-Go Car Insurance

Pay-as-you-go car insurance is often a good investment for people who don’t drive frequently, like students and seasonal workers. To learn more, check out WalletHub’s guide to usage-based insurance.

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Does Nationwide offer a low mileage discount?

No, Nationwide does not offer a specific low mileage discount. Nationwide premiums do take mileage into account, however, as rates are an average of 25% lower for customers who drive 7,500 miles annually than for customers who drive 15,000 miles annually, according to WalletHub data. Low mileage drivers usually save on their Nationwide premium because less time on the road means a smaller chance of filing a claim.… read full answer

It’s also worth noting that Nationwide has a pay-per-mile insurance program called SmartMiles, which can help low mileage drivers save money. SmartMiles charges drivers a monthly base rate, plus a small fee for each mile driven. Each policyholder’s base rate will be determined based on risk factors like their age, location, driving record, and vehicle.

To learn more, check out WalletHub’s guide to Nationwide discounts.

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