WalletHub, Financial Company
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
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.
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