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What Are the Best Telematics Insurance Companies?

In today’s world, you’ll want to find discounts anywhere you can so that you can save as much money as possible. And if you’re a safe driver, you can start doing just that by simply driving. By insuring yourself and your vehicles with the best telematics insurance companies out there, you can start tracking your driving habits and behaviors. From there, you’ll see reduced rates and premiums every time you renew your policy! 

Quicklook: Best Telematics Insurance Companies

  • Best For Low Mileage Drivers: Allstate
  • Best For Privacy: Ensurance
  • Best For People with Multiple Cars: Nationwide
  • Best For Ease of Use: Geico
  • Best For Families: Farmers

5 Best Telematics Insurance Companies

Using a telematics program is a great way to get discounts on your policy and premiums by simply driving like you normally do. Here are some of the best companies that offer telematics programs. 

Allstate

Allstate

Allstate has two available telematics programs. There’s Drivewise, which is a basic telematics policy, and then there’s Milewise, which is designed for low-mileage drivers. Both options are great ways to get discounts on your policy. 

Best For: 

  • Low-mileage drivers

Coverage Options: 

  • Drivewise
  • Milewise 

Special Features

  • Offers two options 
  • Ability to choose the one that matches your driving style

Benefits: 

  • Receive personalized feedback on your driving habits. 
  • Track your savings through the Allstate mobile app. 

Disadvantages: 

  •  Set daily rates for Milewise. 
  •  Milewise is only available in select states. 

Esurance

Esurance

Esurance Drivesense is a unique approach to telematics insurance. You just have to log your trips via the Esurance Drivesense app, which you can download directly to your phone. Plus, the app will only track the trips that you want it to track. The only catch is that you need to log at least fifty trips per policy term. 

Best For: 

  • Privacy 

Special Features

  • Tracking via the Drivesense app

Benefits:  

  • Easy to use 
  • Only track the trips you want it to track 
  • Discount offered immediately upon signing up

Disadvantages: 

  • Currently only available in 35 states
  • A way to get discounts, not a policy in and of itself
Nationwide

Nationwide

Unlike most insurance companies, Nationwide tells you right from the start how much you can save when you use SmartRide. As a reward for safe driving, you’ll save up to 40% on your insurance policy. Plus, you’ll get 10% right after you sign up!  

There are four key factors that SmartRide looks for, including miles driven, hard braking or acceleration, idle time, and nighttime driving. You also can sign up for SmartMiles, which is Nationwide’s pay-per-mile program. 

Best For: 

  • People with multiple cars

Special Features

  •  Nationwide has an easy-to-use telematics app. 

Benefits:

  • SmartRide can work with the Nationwide app or a SmartMiles device. 
  • SmartMiles offers a flexible monthly rate that is based on how far you drive. 
  • SmartRide lasts about four to six months on average.  

Disadvantages: 

  • SmartMiles requires an installed device. 

Geico

Geico

Geico has shown itself to be one of the most trusted insurance brands of all time. Plus, with DriveEasy, Geico has made the experience even better for their customers. WIth DriveEasy, all you have to do is sign up, download the app, log in, and verify your account. From there, just start driving! 

Best For: 

  • Ease of use

Special Features

  • Records everything on the DriveEasy app 
  • No installation required 

Benefits: 

  • You can correct trips that were tracked incorrectly. 
  • Geico will automatically track your trips without you needing to open the app. 

Disadvantages: 

  • There is a chance that your insurance policy rate will go up with Geico. 
  • This opportunity is currently only offered in 26 states. 
Farmers Insurance

Farmers Insurance

Farmers Insurance offers what they call Signal, which is designed to help drivers obtain bigger and better discounts. You can even earn an initial 5% back as a reward for safe driving or up to 15% back each time your policy renews. 

Best For: 

  • Families

Special Features

  • Get an additional 10% off when enrolling drivers under 25
  • Tracks everything via the Signal app

Benefits: 

  • The app stops collecting data when your phone battery is at 10% or less.
  • You can win monthly rewards. 
  • Signal tracks your trips without requiring you to open the app first. 

Disadvantages:

  • Does not have the highest discount rate opportunities

What is Telematics?

Telematics is the process of monitoring both the behavior and the habits of drivers while they are behind the wheel. It also monitors the vehicle’s performance.

What is Telematics Insurance?

Telematics insurance is a type of insurance policy that you can obtain through your insurance company. It is all based around having in-car tracking devices to monitor your driving habits. 

How Does Telematics Insurance Work?

When you agree to an insurance policy, a device from your insurance company will be installed in your car. This device will transmit information to your insurance company, including data like how far you drive, how fast you drive, and other driving-related habits that you have. This will then influence what your insurance premiums will be, meaning the safer of a driver you are, the better the deals you’ll receive. 

Usage-Based Programs

Telematics insurance and usage-based programs go hand in hand. They are both based on the behaviors and the habits of drivers on the road. 

Pay-Per-Mile 

Pay-per-mile is a type of usage-based insurance program that allows you to only pay for the distances that you drive and save money when you are not driving. So, if you spend an entire month driving your vehicle, you will pay more for that month, but if you spend the next month only driving once or twice per week, you will pay less for that month.  

Pay-How-You-Drive

Pay-how-you-drive is just another term for a usage-based program. It will monitor your driving behaviors to determine your insurance prices. 

Benefits of Telematics Insurance

The biggest benefit of using telematics insurance is the potential savings. If you are a safe driver, you will receive discounts, and you’ll also spend less if you do not drive very often. With the events of 2020 in mind, many drivers who had telematics insurance and usage-based insurance saw major decreases in the costs of their insurance as a direct result of working from home. Likewise, you might also potentially receive personalized feedback on how you can improve your driving habits as a whole to further reduce the costs of your insurance policy each month. 

Disadvantages of Telematics Insurance

The main way that your driving habits are monitored is through acceleration and braking. If you live in an area with dense traffic, you will likely not see much of a benefit to using telematics because there will be many times where you have to brake very hard or accelerate quickly to keep up with the flow of traffic. 

Another factor to be wary of is your privacy. The devices that track your driving habits store your data because your insurance company needs this information to monitor your driving habits. To some people, this can feel somewhat invasive, though at the same time, telematics devices are not any more invasive than cell phones. 

Talking Telematics

Talk through the advantages of using telematics with your insurance company to find out if the benefits are worth it given your situation or circumstances. There could be instances where you live or work in a geographic location in which you would not benefit from a telematics policy. 

But with the help of your insurance rep, you can figure out the best policy for you. Plus, if you want to learn more about auto insurance, transportation, and modern driving technology, you can always sign up for the FreightWaves e-newsletter subscription!

FAQ

Which insurance companies are using telematics?

Almost every single large auto insurance company offers some sort of telematics option to their policyholders. However, they might have their own unique name for it instead of calling it a telematics policy. Call your insurance company and ask a representative about the options available to you, including how to enroll for your insurance provider’s version of telematics.

 How do insurance companies use telematics?

Insurance companies track information regarding your driving habits via the device that is installed in your vehicle. With this information, they will be able to determine your discounts and reward you with reduced rates based on your driving habits and behaviors.  

Does telematics affect insurance?

Yes, telematics will affect your insurance. It can be for the worse or for the better, depending on how safe of a driver you are and how frequently you drive your vehicle.

One-Stop-Shop With TAP

TAP & Cornerstone Insurance, is a one-stop-shop with access to multiple insurance markets to provide the best pricing and service available in the trucking industry. To receive a free quote, click the button below!

One-Stop-Shop With TAP

TAP & Cornerstone Insurance, is a one-stop-shop with access to multiple insurance markets to provide the best pricing and service available in the trucking industry. To receive a free quote, click the button below!