How a Car Insurance App Can Help You Save Money

A mileage-based insurance program offered by your auto insurance provider can give you savings on your primary automobile policy. If you drive less frequently, a telematics application could be an ideal option.

What is telematics and usage-based insurance?

Usage-based auto insurance relies on telematics data gathered by GPS-enabled devices installed in your car. Some programs employ a technology that is set up in the vehicle, known as a dongle; others use a smartphone app featuring GPS tracking built into the phone. The auto insurance program utilizes innovative technologies to detect when you begin driving the vehicle.

Usage-based insurance options, like telematics, can monitor factors such as mileage, smoothness, time of day, road type, and other factors that contribute to your driving quality. It can be used by teen drivers new to driving, specifically. The data it provides can help you monitor your progress and prompt you to take charge of your good driving habits.

How much can you save on car insurance?

You can actually put your auto insurance policy to good use by taking part in a telematics program or a car insurance program. Insurers can look at information collected via a telematics app to calculate a percentage discount that can be applied to your insurance rates.

The typical consumer can save anywhere from 10 to 30 when participating in an UBI-based insurance plan. Some insurers offer ratings for participating in telematics programs as an add-on to the reductions you are able to receive while driving.

How your driving can earn you a discount

You're probably wondering how insurance companies value good driving behavior. Insurers set reasonable prices for safe drivers who do not engage in risky driving habits.

Following these bad habits can help prevent you from paying more for auto insurance through a telematics program:

• Maintain a safe distance from other vehicles to avoid stopping in time.
• Use your mirrors and turn signals before executing a turn or lane change.
• Drive the speed limit at all times while driving.

Check your score frequently to improve it as needed or continue what you are doing if you are happy with your current score.

A few bad driving habits that can hurt your telematics score and increase your likelihood of getting into an accident include:

• Distracted driving such as texting or consuming in the car. 
• Driving too close to the person ahead of you, known as tailgating. 
• Too much last-minute braking or hesitant braking. 
• Driving over the limit. 
• Not using your turn indicator.

Ensure that your car insurance provider s enabled or dongle remains mounted so as to be eligible for a participation discount in your insurer's safe driving program. Programs normally run from 90 to 180 days. Some programs will usually run for the full duration of the policy.