Pay-as-you-drive car insurance has become more popular in recent years. Traditionally, car insurance pools the risks of many drivers. Even if you have not had any accidents or violations, car insurance premiums are affected by claims in your area. Pay-as-you-go insurance helps reduce your insurance premiums based on your personalized driving habits. These programs can save you anywhere from 10-50% on your car insurance premiums. If your driving has drastically reduced because of COVID-19, you may qualify for these benefits.
What is Pay-As-You-Drive Car Insurance?
You may have heard of “pay-as-you-drive” insurance as telematics or usage-based insurance. These are typically devices that plug-in to your car’s OBD port that monitor your driving behavior. More recently, many insurance carriers are offering mobile app technology, eliminating the need to plug anything into your vehicle. Based on how much you drive, how you drive, and other factors, it then calculates either a personalized rate or a discount on your insurance premiums after a period of time. There is generally an opt-out period free of charge, too.
Which insurance carriers offer Pay-As-You-Drive Car Insurance and what are the benefits?
At Evarts Tremaine, many of our insurance carrier partners offer pay-as-you-drive car insurance. The table below details what commonly affects your rate with these programs, as well as the benefits potentially available to you.
|Insurance Program||Benefits||What affects your discount?||Will poor driving habits negatively affect your rate?|
|Allstate DriveWise||Immediate sign-up discount & cash back after your first 50 trips||Speeding, nighttime driving, and hard braking||No|
|Cincinnati RideWell||10% sign-up discount for drivers age 24 and younger, 5% discount for all other drivers, and up to an 18% future discount||Speeding, hard braking, mobile phone usage, and fast acceleration or turning||No|
|Nationwide SmartRide||10% sign-up discount & up to 40% future discount||Hard braking, fast acceleration, miles driven, nighttime driving||No|
|Progressive Snapshot||Immediate sign-up discount, personalized premiums are based on driving behavior and range from 0-20%||Hard braking, fast acceleration, miles driven, nighttime driving, mobile phone usage||Yes|
|Safeco RightTrack||10% sign-up discount, guaranteed at least 5% renewal discount||Hard braking, fast acceleration, miles driven, nighttime driving||No|
|State Auto Safety 360||10% sign-up discount and up to 50% future discount||Hard braking, fast acceleration, miles driven, nighttime driving||Yes|
|Travelers IntelliDrive||Immediate sign-up discount [for new clients] & up to 20% future discount||Hard braking, fast acceleration, speed, and nighttime driving||Yes|
|Westfield MissionSafe||10% sign-up discount & up to 40% future discount||Turning or swerving harshly, speed, hard braking, fast acceleration, mobile phone usage||No|
Are you interested in signing up for a pay-as-you-drive program? Contact an insurance advisor at Evarts Tremaine today to discuss your options.