Utilization-based insurance coverage generally is a good possibility when you’re a protected, low-mileage driver. However some insurers can increase your price in case your driving habits are thought of dangerous.
That will help you discover the perfect usage-based (UBI) automobile insurance coverage, Yahoo Finance analyzed 20 main insurers based mostly on six key elements: UBI enrollment low cost, most UBI low cost financial savings, whether or not dangerous driving with UBI can increase your premium, price competitiveness, and total protection and low cost choices. Under are the businesses that topped our rankings.
Be taught extra: Greatest automobile insurance coverage firms total
Farm Bureau’s flagship telematics program, Driveology, has an computerized 10% enrollment low cost and the potential to earn as much as 50% off for protected driving — one of many highest most reductions in our evaluation. Simply as vital, Driveology doesn’t increase your price for dangerous driving. Farm Bureau’s UBI packages could also be known as Drive Development or FB Drives in varied states. Reductions and availability can differ by chapter.
Farm Bureau scored close to the highest of our evaluation for greatest senior automobile insurance coverage.
Farm Bureau execs and cons
Execs
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Highest most UBI low cost
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Doesn’t increase charges for dangerous driving
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Aggressive full protection charges
Cons
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Common value for full protection automobile insurance coverage: $151
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Availability: Varies by state and regional chapter
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Crash Community grade for claims dealing with: B+ (varies by chapter)
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Protection choices: 6 choices
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Accessible reductions: 8 varieties
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Digital expertise rating: 1.8 (out of 5)
Be taught extra: Farm Bureau automobile insurance coverage overview
USAA’s SafePilot program is second on our record of greatest usage-based automobile insurance coverage. It features a 10% sign-up low cost and as much as a 30% renewal low cost based mostly on driving conduct. Like Farm Bureau, USAA stands out as a result of SafePilot doesn’t increase charges for dangerous driving.
USAA was the highest insurer in our rankings for greatest automobile insurance coverage for customer support.
USAA execs and cons
Execs
Cons
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Common value for full protection automobile insurance coverage: $168
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Availability: Nationwide (however restricted to army members, veterans, and eligible household)
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Crash Community grade for claims dealing with: D+
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Protection choices: 13 choices
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Accessible reductions: 15 varieties
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Digital expertise rating: 4.75 (out of 5)
Be taught extra: USAA automobile insurance coverage overview
With Vacationers’ IntelliDrive user-based insurance coverage program, you may obtain a ten% enrollment low cost and as much as 30% off at renewal for protected driving. Nevertheless, in contrast to Farm Bureau and USAA, IntelliDrive can enhance your premium in case your driving habits are deemed dangerous. (There are a couple of exceptions — in Washington, D.C., and states like Montana, North Carolina, and Virginia, dangerous driving received’t increase your price. And in some states, the utmost low cost could also be increased.)
Vacationers additionally scored among the many high insurers in our evaluation for the perfect rideshare insurance coverage.
Vacationers execs and cons
Execs
Cons
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Common value for full protection automobile insurance coverage: $183
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Availability: Nationwide
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Crash Community grade for claims dealing with: C
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Protection choices: 14 choices
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Accessible reductions: 14 varieties
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Digital expertise rating: 4.65 (out of 5)
Be taught extra: Vacationers automobile insurance coverage overview
Nationwide’s SmartRide program ranked no 1 in JD Energy’s 2025 usage-based insurance coverage buyer satisfaction examine. It additionally earned pretty excessive marks in our rating of the perfect usage-based insurance coverage choices. Drivers obtain a 5% enrollment low cost and might earn as much as 40% off at renewal based mostly on protected driving conduct. Like Farm Bureau and USAA, SmartRide doesn’t increase your premium for dangerous driving. Nationwide additionally provides SmartMiles, a separate pay-per-mile program for low-mileage drivers.
Nationwide scored among the many high insurers in our evaluation for the greatest senior automobile insurance coverage.
Nationwide execs and cons
Execs
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Nice most UBI low cost
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Doesn’t increase charges for dangerous driving
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Gives separate pay-per-mile possibility
Cons
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Common value for full protection automobile insurance coverage: $199
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Availability: Nationwide
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Crash Community grade for claims dealing with: C
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Protection choices: 14 choices
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Accessible reductions: 9 varieties
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Digital expertise rating: 4.6 (out of 5)
Be taught extra: Nationwide automobile insurance coverage overview
State Farm rounds out our record of the perfect usage-based automobile insurancecompanies. It has a ten% enrollment low cost, and you’ll earn as much as 30% off at renewal based mostly on elements like braking, pace, and mileage. Importantly, Drive Secure & Save is not going to enhance your price for dangerous driving. Your low cost can fluctuate from time period to time period based mostly in your driving knowledge, however this system received’t enhance your base price.
State Farm additionally has a number of the greatest automobile insurance coverage for customer support, in line with our evaluation.
State Farm execs and cons
Execs
Cons
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Common value for full protection automobile insurance coverage: $190
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Availability: Nationwide
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Crash Community grade for claims dealing with: C-
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Protection choices: 13 choices
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Accessible reductions: 16 varieties
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Digital expertise rating: 4.7 (out of 5)
Be taught extra: State Farm automobile insurance coverage overview
We evaluated 20 main insurance coverage firms to find out which supplied the perfect usage-based insurance coverage packages. The highest spot went to Farm Bureau, which earned 5 stars (out of 5) due to its excessive most low cost and coverage of not elevating charges for dangerous driving. USAA adopted with 4.6 stars, then Vacationers (4.5), Nationwide (4.4), and State Farm (4.4).
See the usage-based insurance coverage star scores for all of the insurers we analyzed under.
Utilization-based automobile insurance coverage (UBI) packages use telematics know-how to trace your driving habits and regulate your premium accordingly. To take part, you usually obtain a smartphone app or plug a tool into your automobile’s onboard diagnostics port. This system then displays elements corresponding to mileage, braking, acceleration, time of day pushed, pace, and cellphone use whereas driving.
After a monitoring interval, it’s possible you’ll earn a reduction based mostly in your driving rating. You usually get an enrollment low cost that takes impact instantly, with the choice to earn as much as the utmost low cost for protected driving. However it’s value noting — even a number of the greatest UBI packages will enhance your price for dangerous driving; it varies by insurer.
There are two fundamental kinds of UBI packages:
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Pay per mile: Your price is predicated largely on what number of miles you drive.
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Pay the way you drive: Your premium displays your driving conduct, not simply mileage.
Automotive insurance coverage based mostly on utilization could also be value it when you’re a low-mileage, usually protected driver and don’t thoughts sharing driving knowledge. In case you regularly pace, brake onerous, or drive late at night time, a conventional coverage might be a greater match.
Even when you enroll in a usage-based program, you’ll nonetheless want the fitting core protection in place. Practically each insurer provides these core coverages:
Past the fundamentals, non-obligatory add-ons can strengthen your coverage. Relying on the insurer, you could possibly add:
Be taught extra: Most typical kinds of automobile insurance coverage defined
Throughout the 20 insurers evaluated, full-coverage charges various broadly. Some firms, excessive on our usage-based record, like Farm Bureau and USAA, have a tendency to cost at or under the nationwide common. Different high UBI insurers, corresponding to Nationwide and State Farm, usually fall nearer to the center of the pack, in line with knowledge from the auto insurance coverage market Savvy Insurance coverage Options.
Be taught extra: Least expensive full protection automobile insurance coverage
Selecting the insurer that gives the most important UBI low cost doesn’t assure the bottom price. Insurers calculate your beginning price utilizing a mixture of private, car, and location-based elements. The load assigned to those elements varies from insurer to insurer.
Listed here are the widespread elements automobile insurance coverage suppliers use when calculating charges:
Be taught extra: Automotive insurance coverage charges are climbing. Listed here are 4 explanation why and 11 methods to save lots of.
Listed here are ideas for locating the perfect usage-based auto insurance coverage.
Earlier than enrolling in any telematics program, ensure the underlying coverage works for you. UBI reductions apply to your premium, however they don’t substitute core coverages.
Additionally, test whether or not the UBI program can increase your charges for dangerous driving. Some insurers solely provide reductions. However others will enhance your price in the event that they deem you a dangerous driver.
As you examine automobile insurance coverage quotes for UBI, have a look at:
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The enrollment low cost you get only for signing up
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The utmost attainable low cost
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Whether or not dangerous driving can enhance your premium
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How lengthy the monitoring interval lasts
An organization with a smaller most low cost however no penalty for dangerous driving could really feel safer than one providing a bigger upside with draw back danger.
Be taught extra: How a lot automobile insurance coverage protection do I would like?
Each insurer tracks conduct in a different way. Some weigh onerous braking closely. Others focus extra on mileage or cellphone use. Ask how your driving is scored and whether or not your knowledge resets at renewal. If privateness issues to you, overview how the corporate shops and makes use of telematics knowledge earlier than enrolling.
Some automobile insurance coverage reductions are mechanically utilized as you fill out a quote type, however others it’s important to ask about. For instance, you normally have to talk to an agent to get a very good scholar low cost or scholar away low cost. Asking an agent when you’re eligible for reductions not already utilized will help you discover extra methods to scale back your auto insurance coverage premiums.
Be taught extra: Greatest automobile insurance coverage reductions
UBI reductions can change from time period to time period. Examine your renewal provide fastidiously to see how your driving rating affected your premium. In case your price will increase, it might be time to match quotes once more or choose out of this system.
Additionally, when you make adjustments through the 12 months, corresponding to shopping for a automobile, ensure to regulate your coverage accordingly. You might also need to store round once more and swap automobile insurance coverage firms if it is smart in your funds.
Be taught extra: Does shopping for automobile insurance coverage on-line prevent cash?
Many use-based insurance coverage packages offer you a small enrollment low cost (typically 5% to fifteen%), with the choice to earn a most low cost of 25% to 50% for persistently protected driving. Your precise low cost is dependent upon your mileage and driving habits through the monitoring interval.
Sure. Allstate provides a telematics program known as Drivewise. In our evaluation, Allstate scored 2.1 stars for usage-based insurance coverage. Whereas it provides an enrollment low cost and the potential for financial savings, its middle-of-the-road reductions and talent to extend your price for dangerous driving lowered its total rating.
That is dependent upon the insurer, however most usage-based packages monitor how a lot you drive and the way you drive. Widespread knowledge factors might embody mileage, onerous braking, speedy acceleration, pace, time of day you’re on the street, and whether or not you utilize your cellphone whereas driving. Your driving knowledge is then used to calculate a rating that determines your low cost (or, in some circumstances, whether or not your price might enhance).
Tim Manni edited this text.
To determine the perfect usage-based automobile insurance coverage packages, Yahoo Finance evaluated 20 main insurers that provide telematics-based insurance policies. Every firm was scored utilizing a standardized rubric targeted particularly on what issues most in a UBI program: how a lot it can save you, whether or not your price can enhance for dangerous driving, and the way aggressive the insurer’s base pricing is.
All elements have been transformed to a standardized level scale and mixed right into a composite rating. Most low cost potential and price impression insurance policies carried the best weight, adopted by enrollment reductions, price competitiveness, and total protection flexibility.
1. Most potential low cost: 30% of rating. We evaluated the very best publicly marketed low cost out there by way of every insurer’s usage-based automobile insurance coverage program. Firms providing bigger most financial savings earned increased scores.
2. Fee impression coverage: 20% of rating. Insurers that don’t enhance premiums for dangerous driving acquired full credit score. Applications which will impose surcharges earned zero factors on this class.
3. Enrollment low cost: 15% of rating. Many UBI packages provide an computerized low cost only for signing up. Bigger enrollment reductions earned extra factors.
4. Fee competitiveness: 25% of rating. Common price estimates have been supplied by Savvy Insurance coverage Options (“Savvy”), which operates a nationwide insurance coverage market and licensed company. Estimates are generated utilizing Savvy’s in-house machine studying fashions based mostly on greater than 3 million knowledge factors throughout main insurers.
For this evaluation, charges have been modeled utilizing a regular “full protection” profile. Full protection automobile insurance coverage contains legal responsibility insurance coverage, any state-required protection, plus collision and complete protection. Insurers with extra aggressive full protection charges earned increased scores.
5. Protection choices and total low cost breadth: 10% of rating. This rating additionally thought of each the overall variety of protection choices and reductions out there. Firms providing broader coverage flexibility and reductions acquired extra factors.
Except said in any other case, the estimates above are supplied by Savvy Insurance coverage Options (“Savvy”). Savvy operates a market for dwelling and auto insurance coverage, plus an company licensed in all 50 states. Estimates are generated utilizing Savvy’s in-house machine studying fashions based mostly on over 3 million knowledge factors, and embody greater than 15 of the most important insurance coverage firms in Savvy’s nationwide knowledge set. This contains knowledge from greater than 2 million insurance coverage accounts linked by way of Trellis Join, an in-house know-how permitting shoppers to “hyperlink” their insurance coverage accounts earlier than looking for insurance coverage, and tens of hundreds of insurance policies certain by Savvy’s personal brokers. It takes into consideration a myriad of things to create predictions, corresponding to:
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Policyholder age
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Variety of automobiles
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ZIP code
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Automobile age
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Insurer
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… and extra
Savvy creates estimates by working fashions towards a number of inputs to the parameters of curiosity. As an illustration, the “teen driver” estimates have been created by adjusting the policyholder age enter into the pricing mannequin whereas retaining all different variables regular from the baseline for “full protection.” The fashions allow hyper-personalized estimates that have in mind a plethora of consumer attribute permutations (e.g., teen drivers in particular states, teen drivers with new automobiles, teen drivers in particular states with new automobiles) to supply people with a novel and tailor-made expertise. The charts above are a subset of the sorts of personalization Savvy can do.
The next are definitions utilized by Savvy when offering its price estimates for varied kinds of protection.
Full protection automobile insurance coverage: A coverage with complete, collision, and legal responsibility protection.
Common policyholder: A 48-year-old driver who owns a 13-year-old car and lives in an average-income ZIP code.
Senior driver: A 70-year-old policyholder with full protection automobile insurance coverage.
Good driver: Drivers throughout all protection varieties, car varieties, and places who don’t have any tickets, accidents or DUIs.
