Before enrolling in a driver tracking program, understand how it may affect your rate. Some insurers may raise your premium if they detect unsafe driving patterns.
Car insurance monitoring devices track your driving using telematics, which utilizes technology from your phone or car to collect and transmit data. Telematics devices can capture GPS data and other information. Your insurer can access this information if you enroll in its driver tracking program.
There are generally two types of tracking devices that auto insurers use. Most companies offer mobile app options, but some still offer physical plug-in devices.
Usage-based insurance, also called UBI, utilizes telematics technology to offer a more personalized car insurance rate based on how you drive.
Most companies offer UBI in the form of safe driving or driver tracking discount programs. If you enroll, your insurer will track your driving habits using an app or plug-in device. Your company may offer you a discount or increase your rate based on how you drive.
Note that program details vary by company. Some are strictly discount-based and won't increase your rate, but others may if they detect unsafe driving. Before signing up, understand what the program tracks and how it can affect your rate.
A number of auto insurers offer usage-based insurance programs, including those listed in the table below.
Insurance companies track unsafe driving habits that can increase your risk of getting into an accident. While the driving habits tracked can vary by insurer, they commonly include the following:
If you're a safe driver, car insurance tracking devices and programs can be an easy way to save money. They typically don't require much work from you. You simply download the app or plug the device into your car and drive.
However, consider your driving patterns before signing up. Some programs subtract points for traveling many miles or driving late at night, for instance, which might not be suitable for people who work overnight shifts or have long commutes. Despite this, enrolling in one of these programs may help you improve your driving.
"When they start a program, drivers tell us they feel more in control. The feedback can be enlightening. People tell us they didn't realize how much they used their phone while driving," notes Powers.
Here are some pros and cons to consider when deciding whether you should enroll in a program:
"Research shows that telematics programs significantly improve driving habits. In one study across 100,000 drivers, we found that the drivers who engaged with their UBI app frequently reduced their risky driving behaviors significantly. Distraction fell by 20%, speeding by 27% and hard braking by 9%. As a result, their chance of getting into a crash with an injury fell by 5.5%," said Powers.
For more information about auto insurance, see the following guides: