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Updated April 2026 | NAIC, J.D. Power, NerdWallet 2026

Telematics Car Insurance: 10 to 30% Savings With UBI Programs

Eight major UBI programs from the major carriers. Which programs only reward safe driving, which can penalise aggressive driving, and the privacy trade-off behind the discount.

The major UBI programs side-by-side

ProgramCarrierMax discountCan it raise rates?
SnapshotProgressive30%Yes, up to ~10% increase
Drive Safe and SaveState Farm30%No
DrivewiseAllstate25%No
SmartRideNationwide40%No
RightTrackLiberty Mutual30%Mostly no
DriveEasyGEICO25%Yes, varies by state
IntelliDriveTravelers30%No (rewards only)
SafePilotUSAA30%No

One-sided vs two-sided programs

One-sided programs (Drivewise, SmartRide, Drive Safe and Save, IntelliDrive, SafePilot, mostly RightTrack) only reward safe driving with discounts. Aggressive driving simply earns no discount; it does not increase the premium above the standard rate. These programs are low-risk to enroll in: worst case you stay at the standard rate, best case you save up to 30 to 40 percent.

Two-sided programs (Snapshot, DriveEasy in some states) can both reward and penalise. Safe drivers earn discounts up to 30 percent; aggressive drivers can see surcharges of 5 to 20 percent. The two-sided programs typically offer larger top-end discounts to safe drivers because the actuarial model can identify both ends of the distribution and price accordingly. Drivers who self-identify as careful should consider two-sided programs for the larger discount potential. Drivers unsure of their actual behaviour should stick with one-sided programs to avoid downside.

The privacy trade-off

All telematics programs collect continuous driving data: GPS location with time stamps, speed, accelerometer-derived braking and turning events, phone use indicators (in some programs), trip start and end times. Carriers state in privacy policies that data is used for underwriting only, not shared with marketers, not sold, and retained for a fixed period after policy end.

The Electronic Frontier Foundation and Consumer Reports have raised concerns about telematics data being subpoenaed in civil litigation (divorce cases, personal injury cases) where one party seeks to establish the other party's whereabouts at specific times. Some drivers find the collection itself uncomfortable regardless of stated privacy protections. The trade-off for the discount is personal: $20 to $60 per month savings vs continuous behavioural surveillance.

For drivers who decide the trade-off is acceptable, telematics is among the highest-yield single actions available. For drivers who decline telematics on principle, the standard policy options (good driver discount, deductible optimisation, bundle discount, carrier shopping) still offer meaningful savings without behavioural tracking.

Telematics FAQs

How much can telematics save on car insurance per month?⌄
Telematics programs (also called usage-based insurance or UBI) typically save safe drivers 10 to 30 percent on full coverage premiums. On the $208 national average, that is $20 to $62 per month in savings. The exact savings depend on the program, the driver's actual behaviour (smooth braking, modest acceleration, daytime driving, no phone use, modest speeds), and the state. Aggressive drivers using a two-sided program (Progressive Snapshot, GEICO DriveEasy) can see rate increases of 5 to 20 percent, so the program is calibrated, not always beneficial.
What is the difference between Snapshot, Drivewise, and SmartRide?⌄
All are usage-based insurance programs run by different carriers. Progressive Snapshot is the oldest and best-known, launched 2008, uses mobile app or plug-in device, can result in either discount or surcharge based on driving. Allstate Drivewise uses a mobile app, only rewards safe driving with no surcharge for aggressive driving (one-sided program). Nationwide SmartRide is similar to Drivewise, primarily rewards-based. State Farm Drive Safe and Save offers a small participation discount plus performance-based additional discount up to 30 percent. Liberty Mutual RightTrack offers similar mechanics. GEICO DriveEasy can result in both discounts and surcharges. The two-sided programs (Snapshot, DriveEasy) typically offer larger top-end discounts but carry real downside risk for aggressive drivers.
Which carriers do not penalise aggressive driving?⌄
Allstate Drivewise, Nationwide SmartRide, and State Farm Drive Safe and Save are one-sided programs that only reward safe driving without penalising aggressive driving. Worst-case outcome under those programs is no discount earned; you do not pay more than the standard policy. Progressive Snapshot and GEICO DriveEasy are two-sided programs that can both reward and penalise. Liberty Mutual RightTrack is mostly one-sided but has some carrier-specific rules. Always read the program terms before enrolling, particularly the surcharge possibility.
Does telematics track my location?⌄
Yes, all telematics programs use GPS data, but they primarily use it for context (time of day, urban vs highway driving) rather than monitoring specific destinations. Carriers state in their privacy policies that they do not share location data with marketers, do not sell it, and do not use it for purposes beyond insurance underwriting. The data is held for the policy period plus a retention window (varies by carrier, typically 1 to 7 years). Some drivers find the tracking intrusive regardless of stated privacy protections; the trade-off for the discount is personal.
Can I share telematics data between drivers in my household?⌄
Each driver typically needs their own telematics enrollment. The discount applies to the driver who enrolled and demonstrated safe behaviour. In a multi-driver household, each driver runs the app on their own phone or uses the in-vehicle device when they drive. The carrier calculates a composite household discount based on each driver's individual score. A household with one safe driver and one aggressive driver may net a small discount or no discount depending on the carrier's compositing logic.
What driving behaviours hurt my telematics score?⌄
Hard braking events (sudden stops, often from following too closely). Hard acceleration (rapid speed increases, often from impatience at lights). High speeds, especially over 80 mph or 15 mph over posted limit. Late-night driving, typically 11pm to 5am, which the actuarial data flags as higher-risk. Phone use while driving (detected by some programs via accelerometer and phone screen activity). Sharp cornering at speed. Excessive miles driven if your policy has a low-mileage discount component. The composite of these factors determines your score.
How long do I have to use telematics?⌄
Most programs have an initial monitoring period of 30 to 180 days, during which the carrier collects baseline data and calculates your individual driving score. After the monitoring period, the discount or surcharge is locked in for that policy term. Some programs continue tracking throughout the policy and adjust the renewal discount. Others use only the initial monitoring period and then stop tracking. Always read the specific program terms; Snapshot, for example, continues tracking throughout, while some other programs only use the initial 90 days.

Related

Pay-per-mile per month
Distance-based UBI cousin
Progressive (Snapshot)
Two-sided program leader
State Farm (Drive Safe and Save)
One-sided rewards program
Teen driver per month
UBI especially valuable for teens