If your insurance rates are through the roof and you’re looking for relief, the best usage-based car insurance policies may be able to help. These policies adjust your premiums based on your driving patterns.

The safer you drive, the less you pay for insurance.

This type of policy is offered by some of the biggest names in auto insurance, as well as smaller, lesser-known companies. Let’s take a look at some of the most widely available options.

What Is Usage-Based Car Insurance?

Usage-based car insurance, also referred to as UBI is a discount program or policy that rewards safe drivers with lower insurance rates. This can come in the form of lower premiums, higher discounts, payment credits, etc.

Usage-based car insurance systems typically use an app on your phone to monitor your driving and record information about the way you drive.

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What Information Do Usage-Based Car Insurance Programs Gather?

The information that is gathered for UBIs is referred to as telematics. This can consist of:

  • Driving speed
  • Acceleration
  • Braking
  • Time
  • GPS location

Several insurers also collect data on phone usage.

While privacy can be a concern with the data collected, insurance companies do not share this data beyond settling claims or compiling with requests from law enforcement. Think about it this way: if the insurance company released the data, their competitors could access it, and they’d lose their advantage.

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Who Is It Best For?

UBI programs are often best for those who don’t usually qualify for rate discounts. This includes those who are very young, old, have bad credit, or have a poor driving history.

These programs can also benefit single drivers (no multi-driver discounts) and those who don’t drive much (less driving equals safe driving).

These programs are not well suited to bad drivers, i.e., those who speed, brake hard, etc. Additionally, these programs can be a poor choice for those who drive at night, drive a lot, drive during rush hour, or are technology-averse.

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Best Usage-Based Car Insurance Policies


Liberty Mutual – RightTrack

🏆 Best For Locked-in Discount

The biggest advantage of the RightTrack program offered by Liberty Mutual is the locked-in discount. Once you complete your 90-day evaluation, the discount you earn is locked in.

You will retain your percentage-based discount for the life of your policy with Liberty Mutual. Even if you get a new car, the discount will remain. No re-evaluation is necessary.


  • Automatic enrollment discount
  • Discount locked in for life


  • Bad drivers are penalized
  • Varying terms in different states
Usage-based Car Insurance: LibertyMutual Insurance page
Quick Facts
Evaluation period90 days
Discount10% – 30%
Minimum device requirementsAndroid 7.0, iOS 14.0
App store reviews4.6 Goolge, 4.8 Apple

➕ Liberty Mutual has some additional restrictions and guidelines for different states. This can affect several factors:

  • Driving information collected
  • Minimum discount amount
  • When the discount is applied

Additionally, depending on which state you reside in, you may be forced to have all drivers on your policy sign up for RightTrack.

What Information Does RightTrack Gather?

📱 Once you sign up for RightTrack, the mobile app will begin tracking your:

  • Braking
  • Acceleration
  • Night-time driving

🚘 In certain states, additional data is gathered, such as:

  • Rush hour driving
  • Low-speed driving
  • Distracted driving (phone usage)

This information makes up your RightTrack score. You can view this information on the app and update it as needed (i.e., change driver).

You receive a 10% discount when you enroll, and your driving is tracked for 90 days. After this, your RightTrack score will determine your new discount. This discount is locked in for life.

Visit RightTrack


Nationwide – SmartRide

🏆 Best For Improving Your Driving Habits

SmartRide by Nationwide is a program that continuously monitors your driving habits; as long as you have a policy, the app will monitor your driving.

The upside here is the incentive to improve your driving habits. You receive personal feedback on your driving and an estimated discount updated weekly. So, if you have a bad week, you have time to improve your discount.


  • Rewarded for improving your safe driving
  • Personalized driving suggestions


  • All drivers have to enroll
  • You are monitored forever
Usage-based Car Insurance: Nationwide - SmartRide insurance page
Quick Facts
Evaluation period4 – 6 months (as quick as 80 days)
Discount15% – 40%
Minimum device requirementsAndroid 6.0, iOS 12.0
App store reviews4.5 Google, 4.6 Apple

The RightTrack dashboard will update weekly with your potential policy discount based on your driving. Your discount is applied at policy renewal.

What Information Does SmartRide Gather?

📱 Once you enroll and receive your 15% discount, the Nationwide app begins tracking the following driving habits:

  • Miles driven
  • Hard braking
  • Acceleration (in excess of 7.7 miles per second)
  • Nighttime driving (midnight to 5 am)

The initial evaluation period can be as short as 80 days or up to 6 months, depending on how often you drive. This information is used to calculate your new discount.

Your driving habits are monitored for the life of your policy, and your discount can change each renewal period accordingly.

Visit SmartRide


Progressive – Snapshot

🏆 Best For New Customers

If you have insurance with another company and are looking to switch, Progressive Snapshot offers some unique incentives.

You can try out the insurance before you switch using the 30-day Road Test program. This can give you a preview of what kind of discount you might qualify for.

Plus, as a new Progressive customer, you’ll receive an automatic enrollment discount that applies until your next policy renewal period.


  • Enrollment discount
  • Try before you buy


  • Penalized for bad driving
  • Your driving is continuously evaluated
Usage-based Car Insurance: Progressive - Snapshot page
Quick Facts
Evaluation periodYour policy period (6 or 12 months)
Maximum discount$94 – $231*
Minimum device requirementsAndroid 7.0, iOS 13.0
App store reviews3.6 Google, 4.4 Apple

* discount range based on average savings at sign-up and average savings after 6 months

Using the Progressive app with Snapshot, you can track your driving stats, view your discount, and view customized safe driving recommendations.

What Information Does Snapshot Gather?

📱 Upon enrolling for Snapshot, you have 45 days to begin using the app or plug-in device to track your driving data. Information gathered will include:

  • Mileage
  • Hard braking
  • Acceleration
  • Late-night driving (midnight – 4 am)
  • Phone activity (certain states only)

Your driving habits are monitored for the life of your policy, and your discount can increase or decrease for every policy renewal period if your driving habits change.

Visit Snapshot


Root Car Insurance

🏆 Best For Those With Bad Credit

All of Root’s auto insurance policies are based on driving habits. All policyholders are tracked, and rates are customized to your driving.

This is especially useful for those with bad (or no) credit. Insurance companies often penalize you for poor credit if they insure you at all. Root weighs driving history more heavily and is even working towards dropping credit scores from their calculations soon.


  • Try before you buy
  • Doesn’t look at credit


  • Won’t insure bad drivers
  • Continuously monitors your driving
Usage-based Car Insurance: Root Insurance homepage
Quick Facts
Evaluation periodAs little as 3 weeks
DiscountAverage $900 in savings a year
Minimum device requirementsAndroid 5.0, iOS 14.0
App store reviews3.4 Google, 4.7 Apple

Through the Root app, you get access to your driver scorecard that details your driving behavior and what steps you can take to improve it.

What Information Does Root Gather?

📱 Once you sign up for Test Drive through Root, your initial 3+ week evaluation will begin. According to Root’s website, they will track information “such as braking, speed of turns, driving times, and route consistency.”

You’ll receive your customized rate quote at the end of your evaluation. Your driving habits will continue being monitored for the life of your policy, and rates will increase/decrease accordingly.

👉 Note: If your driving habits fall below Root’s safe driver minimum standards at any time, you can be dropped from the insurance program.

Visit Root


State Farm – Drive Safe & Save

🏆 Best For Low-mileage Drivers

The Drive Safe & Save program by State Farm may be best suited to those who don’t drive a lot. This is thanks to the odometer read requirement and separate low-mileage discount.

Mileage driven is also critical to the Drive Safe and Save discount. So the less you drive, the better your chances of scoring the maximum discount, which can be 30% or more.


  • Mileage-based discounts
  • Beacon doesn’t record your location


  • Can increase your current rate
  • Requires a separate Bluetooth device
StateFarm - Drive Safe and Save page
Quick Facts
Evaluation periodPolicy period
Discount10% – 30%*
Minimum device requirementsAndroid 8.0, iOS 15.0
App store reviews4.1 Google, 4.6 Apple

* After a trial period discounts can decrease below 10%. 30% is the maximum discount in NY, but can be higher in other states.

Drive Safe and Save is also available through select connected cars, such as 2020 or newer Ford vehicles. The program was previously offered through Onstar, but enrollment has since been discontinued.

What Information Does Drive Safe & Save Gather?

📱 Once you enroll for Drive Safe and Save, you will receive an enrollment discount, and your Bluetooth Beacon will be shipped. Once installed, the device will begin tracking your:

  • Mileage
  • Acceleration
  • Hard braking
  • Sharp turns
  • Speed (exceeding the speed limit by 8+ mph)

The app will also track your phone usage to determine distracted driving.

Your driving habits will be tracked for the life of your policy, and your discount will increase/decrease according to the changes in your habits.

👉 Note: If you already have the low-mileage discount and the program records annual mileage over 7,500, you may lose your low-mileage discount.

Visit Drive Safe & Save


Bonus Option: Credit Karma – Karma Drive

🏆 Best For Getting The Biggest Discount

If you are unsure which usage-based discount program is best for you, then Karma Drive might be able to help. This tool, offered by Credit Karma, tracks your driving behaviors and uses the data to shop discounts at all their partner providers.

There is no risk with using the tool (your current insurance will not go up), and you can quickly see which insurance company will give you the biggest discount.


  • Shop discounts at multiple companies
  • Can’t raise your current rates


  • No discount guarantee
  • Records location data
Credit Karma - Karma Drive page
Quick Facts
Evaluation periodVaries
Minimum device requirementsAndroid 8.0, iOS 14.0
App store reviews4.7 Google, 4.8 Apple

Using Karma Drive also gives you access to all of Credit Karma’s other services, such as credit monitoring, credit product matching, and educational resources.

What Information Does Karma Drive Gather?

📱 Once you sign up through the app, your driving information will be recorded. Information used will depend on matched partners but can include:

  • Mileage driven
  • Times of day
  • Average speed
  • Typical routes
  • Acceleration
  • Braking

This information forms your safe driving score, which is shopped around to UBI programs. You’ll see a preview of your potential discount with each partner and can request a customized quote.

The evaluation period varies from driver to driver, and there is no need to keep using Karma Drive once you receive your personalized offers.

Visit Karma Drive

Comparing Usage-Based Car Insurance Companies

It’s not easy to select the best usage-based car insurance plan for your needs. To help with this, we compare factors such as maximum discount and program availability to highlight the differences between programs.

Maximum DiscountMonitoring PeriodProgram availabilityAll household drivers required to enroll?Can your current rate increase?
RightTrack – Liberty Mutual30%90 days41 states Yes*Yes
SmartRide – Nationwide40%permanent45 statesYes*No
Snapshot – Progressiveunknownpermanent49 statesYes*Yes
Root Car InsuranceCustom ratespermanent34 statesNoN/A
Drive Safe & Save – State Farm30% +permanent47 statesNoNo
Karma Drive – Credit KarmaVariesTrial period39 statesNoNo
*varies based on state

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