Personal Insurance

Telematics Discount Programs

telematics discounts

You can earn a discount for your safe driving habits by signing up for telematics. By enrolling in a telematics program, you’ll have more control of your policy savings and feel confident you are getting a competitive rate.

What is telematics insurance?

Telematics insurance has a few other names, including usage-based, pay-as-you-drive, and pay-per-mile insurance. Regardless of what you call it, the concept remains the same. Your auto insurance rate is tailored to you based on your driving behaviors and habits.

What is a telematics device?

Telematics devices measure different aspects of your driving behavior in real time. They come in various forms, such as the following:

  • Diagnostic port plug-in device
  • Phone application
  • Bluetooth beacon

The behaviors a telematics device tracks can vary from one insurance company to another. However, these are some of the common driving habits insurance companies will keep track of with a telematics device:

  • Your mileage
  • Braking and acceleration
  • Time of day you’re driving
  • Cornering
  • Phone usage
  • Speed

Can telematics help me save on car insurance?

It would be fantastic if we could confidently say, “Yes. Telematics will save you money on car insurance.” However, there are situations where you may be better off sticking with your standard auto insurance policy.

For example, you need to be better than the average driver to see a discount on your rates. When we say good driver, we don’t mean that you can successfully pull off daredevil stunts in daily traffic—unfortunately, this isn’t the Fast and Furious movie franchise. In this case, a better driver means a safer driver.

If you incorporate some Fast-and-Furious-esque road maneuvers while driving with a telematics system, you’ll almost certainly see your rates increase above what you’re currently paying.

If you know you don’t have the best driving habits, you may still be able to save money by looking for discounts, like:

  • Multi-car Policy
  • Good Student
  • New Car
  • Military

What are the pros and cons of telematics?


  • You can improve your premium if factors out of your control affect your current car insurance premium. For example, you’re a young driver or live in an accident-prone area.
  • You get a rate discount for being a good driver.
  • If you’re looking to improve as a driver, you’ll get insights into your habits and be able to adjust them accordingly.


  • You give up a lot of data privacy; your insurance company will see where you drive.
  • Telematics policies aren’t consistent among insurance companies, and some track more information than others.
  • A pay-as-you-drive program may not be a great option for people who drive a lot—think commuting more than 35 miles per day. You could pay more than you would for a standard car insurance policy.
  • If you have to drive at night, your rates could increase.

We represent several insurance companies that offer telematics discount programs. Programs vary by company, state availability, and individual eligibility. We’ll help you find the right program for your needs. Learn how you can start saving today!

Progressive — Snapshot Program
Nationwide — SmartRide
Safeco — RightTrack
Travelers — IntelliDrive

Click here to learn more about telematics.

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