What Is Usage-Based Insurance and How Does It Save Money?
In a Nutshell: Usage-based insurance (UBI) — also called telematics — uses a smartphone app or device to track your actual driving behavior (speed, braking, mileage, time of day). Safe drivers can save 10–40% on their premium. Programs like Progressive Snapshot and Allstate Drivewise offer an initial discount just for signing up.
UBI Programs by Insurer
| Insurer | Program | Initial Discount | Max Savings | Tracking Method |
|---|---|---|---|---|
| Progressive | Snapshot | Up to 30% | 10–40% | App or plug-in device |
| Allstate | Drivewise | Up to 10% | 10–40% | Smartphone app |
| State Farm | Drive Safe & Save | 5–10% | 10–30% | Vehicle data or app |
| Geico | DriveEasy | Varies | 10–30% | Smartphone app |
| Nationwide | SmartMiles | Base rate | Varies | Pay-per-mile |
| USAA | SafePilot | Up to 10% | 10–30% | Smartphone app |
Key Takeaways
- UBI saves 10–40% for safe, low-mileage drivers
- Progressive Snapshot offers the best initial discount (up to 30%)
- Programs track speed, braking, time of day, and mileage
- Low-mileage drivers and daytime drivers save the most
- Available in most states (not CA, HI for some programs)
- Privacy-conscious drivers can opt out at any time
Last updated: July 2026
Disclaimer: This article provides general information about usage-based insurance programs. Discount structures and availability vary by state and insurer. Always review program terms before enrolling.