Last Updated on October 26, 2026 by Syed Sarim Naqvi
Telematics car insurance uses a phone app or plug-in device to track how you drive and prices your policy from the data, with Insurify putting potential discounts at 5% to 40%. The catch is that some programs can raise your rate: Progressive says around 2 out of 10 Snapshot drivers get an increase, and privacy rules differ because data may be shared under some insurers’ agreements.
Key Takeaways
- Insurify says telematics can earn discounts of 5% to 40%, with Nationwide SmartRide offering up to 40% and State Farm Drive Safe & Save up to 30%
- Rates can increase under Allstate Drivewise and Progressive Snapshot, and State Farm raises rates only for mileage-based reasons in some states, per Bankrate
- NerdWallet reports Progressive says about 2 out of 10 Snapshot drivers get a higher rate, while those who earn discounts save an average of $145 a year
- Availability varies: Snapshot is available everywhere except California, Drivewise everywhere except Alaska and California, and Drive Safe & Save everywhere except California, Massachusetts and Rhode Island
- Pay-per-mile programs such as Allstate MileWise and Nationwide SmartMiles charge by distance and suit low-mileage drivers
What Is Telematics Car Insurance?
Bankrate says usage-based programs track driving habits through a plug-in device or telematics app and discount safe drivers. Insurify explains most programs continuously track drivers and use the data to set rates at renewal, and lists behaviors tracked such as speed, braking, time of day and mileage. Bankrate separates usage-based insurance from pay-per-mile policies: with pay-per-mile, drivers typically pay a set amount per mile on top of a base rate set by the insurer.
How Do the Major Programs Compare?
Bankrate lists five national programs: Allstate Drivewise, GEICO DriveEasy, Nationwide SmartRide, Progressive Snapshot and State Farm Drive Safe and Save. It says Drivewise offers an instant discount for signing up and up to 40% per year, Progressive reports average savings of $94 at sign-up and $231 a year, and State Farm offers up to 30% at each renewal based on the past 12 months. Insurify says Nationwide SmartRide may give 10% for signing up with potential savings of up to 40%. Bankrate adds that Allstate MileWise and Nationwide SmartMiles are pay-per-mile programs.
| Program | Reported Discount | Rate Increase Risk |
|---|---|---|
| Allstate Drivewise | Sign-up discount, up to 40% a year | Rates may increase or decrease |
| Progressive Snapshot | Average $94 at sign-up, $231 a year | About 2 in 10 drivers get an increase |
| State Farm Drive Safe and Save | Up to 30% each renewal | No increase except mileage in some states |
| Nationwide SmartRide | 10% at sign-up, up to 40% | Check program terms |
| Pay-per-mile (MileWise, SmartMiles) | Base rate plus per-mile charge | Cost rises with mileage |
Can Telematics Raise Your Rate?
Insurify says most telematics programs only lower rates, but some can raise rates based on driving data: Allstate DriveWise, Progressive Snapshot and State Farm Drive Safe & Save if mileage-based. NerdWallet says Progressive’s Snapshot pricing means your rate could go up if driving is considered risky. Bankrate says a drivers who log unsafe habits could see their premium rise in DriveWise. A guide recommends reading the terms and conditions before enrolling.
What About Privacy?
Bankrate says in other states, and in the privacy agreements of most major insurers, loopholes may permit carriers to share or sell customer data collected through telematics, and that choosing telematics is a personal decision based on your comfort with your insurer’s policies and local privacy laws. Insurify says California prohibits telematics-based auto insurance pricing and that telematics availability varies by state. Insurify lists the tracked behaviors and notes privacy concerns, so check which data your app collects.
Who Benefits Most?
Insurify says telematics is worth it if you drive safely as a rule. Bankrate says Allstate recommends pay-per-mile for low-mileage drivers such as people who work from home, commute by public transport or are retirees. An older consumer guide notes Allstate says Drivewise benefits drivers most if they drive no more than 12,000 miles a year. Night driving and hard braking can reduce your score, so heavy night drivers may save less.
What Should You Check?
- Can rates rise? Ask whether the program can only reduce your rate
- Data use: read the privacy terms on sharing and selling data
- Tracking method: app, plug-in device or built-in car system
- Trial period: NerdWallet notes Progressive offers a 30-day trial before showing a quote
- State rules: check availability where you live
How Does This Connect to Other Auto Cover?
Pricing factors are in Credit-Based Insurance Scores Explained, injury cover in PIP vs MedPay Explained, and uninsured drivers in Uninsured and Underinsured Motorist Coverage Explained. Work driving is in Delivery and Rideshare Driver Insurance Explained, and non-owners in Non-Owner Car Insurance and SR-22 Explained.
FAQ
What is telematics insurance?
Insurance priced from data about how you drive, collected by an app or device.
How much can I save?
Insurify cites 5% to 40%, and results vary by driver and insurer.
Can my rate go up?
Yes, with some programs; Progressive says about 2 in 10 Snapshot drivers get an increase.
Is it available in California?
No, according to several sources; California prohibits telematics-based pricing.
What is pay-per-mile insurance?
A policy with a base rate plus a charge for each mile driven.
Is my data private?
Policies differ; some insurers’ agreements may allow sharing, so read the terms.
Who should use it?
Safe, low-mileage drivers who are comfortable with tracking.
Glossary
- Telematics: technology that records driving data.
- Usage-based insurance: pricing tied to driving behavior.
- Pay-per-mile: charging per mile on top of a base rate.
- Renewal discount: a discount applied at each policy renewal.
- Plug-in device: a tracker connected to the car’s diagnostic port.
Sources
- Bankrate: Telematics Car Insurance (programs, privacy loopholes, pay-per-mile)
- Bankrate: Usage-Based Insurance (availability, savings, increase risk)
- Insurify: Telematics Car Insurance (2026) (5% to 40%, California ban, programs that can raise rates)
- NerdWallet: Comparing Drivewise to Snapshot (2 in 10 increase, $145 average)
- Credit.com: Should You Let Your Car Insurance Company Spy on You? (older guidance on mileage and privacy)
Related reading: Motorcycle Insurance Explained · Umbrella Insurance Explained · Gap Insurance Explained
Published October 2026. Programs, discounts and state availability change often and some sources are older; always read the program terms on rate increases and data sharing, and refresh this article periodically.
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