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All of the 10 largest car insurance companies use telematics, including State Farm and GEICO. Telematics is a technology that uses wireless devices to transmit data, and insurance companies often use it to track a customer’s driving habits, such as speed and braking, in order to give them a discount for good driving. This is typically done through an app or vehicle plug-in device.
Depending on the insurer, drivers may be able to save up to 50% on their premium if they practice good driving habits while using a telematics program. Some insurers also raise rates based on bad driving, however.
Telematics Insurance Companies
| Company | Telematics Program |
| SmartRide and SmartMiles | |
Keep in mind that an insurer’s telematics program may not be available in every state. Additionally, each insurance company tracks different driving habits, so make sure to check the program details before signing up.
To learn more, check out WalletHub’s guide to usage-based insurance.
People also ask
How does telematics insurance work?
Telematics insurance works by using technology to collect data on your driving habits such as how fast you drive, how hard you brake and how many miles you drive, in order to calculate your risk level and your rate. If you pose a lower risk of accidents than the average driver, you can save money on your premium.
Your insurance company will provide you a “black box” device that attaches to your car, or...
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