Car insurance rates are rising in 2023, and many people are feeling the financial pain. If you want to free up some extra cash flow in your monthly budget, saving money on car insurance is often an easy way to go. But not every strategy for saving money on car insurance is a good idea.
Raising your deductible can lower your premiums, but it could leave you vulnerable to significant out-of-pocket costs in the event of a car accident. Cutting back on good coverages like rental car reimbursements can also be short-sighted, as I learned from being in a bad car accident that put my family’s car in the shop for a month.
How can you save money on car insurance without compromising coverage? There’s a surprising new trick that more people might want to consider: remote car insurance.
Let’s take a look at what telematics car insurance means, and how it can save you money.
Remote Car Insurance: Personal car insurance with the power of driving data
Traditional car insurance bases its premium costs on a lot of impersonal and inaccurate data. Your car insurance rates may depend on where you live, your age, and the cost of car repairs. If you live in a city with a higher risk for car accidents, your insurance premiums may be higher. Basically: traditional car insurance penalizes you for other people’s bad driving. It’s like “guilt by association.” Just because you live in a certain city or area doesn’t mean you deserve to pay higher rates.
Remote car insurance is a completely different approach. Instead of lumping you in with all the other unsafe or risky drivers, IT allows you to prove to your insurance company that you’re a good driver, and that you deserve discounts on your car insurance. Telematics is a personal car insurance. It uses your driving data (which is shared with your insurer with your permission) to reward you for safer driving.
Read more: Check out our picks for the best car insurance companies
How IT can save you big money on car insurance
Here’s how telematics works:
- Your insurance company asks you to consent to sharing your driving data.
- The company sends you a special mobile app or add-on device that you install on your car.
- Your insurance company starts tracking your driving data (with your permission).
- If your driving data shows you’re less at risk, you can get lower car insurance rates.
Different insurance companies measure different driving habits and data. However, some typical driving data included in your auto insurance telematics software may be:
- How much do you drive: The fewer miles you drive, the lower your car insurance rates will be.
- Acceleration and braking speed range: Aggressive driving can put you at greater risk for accidents.
- Idle time: The more time you spend in scary traffic, the greater the risk of fender benders.
- Night driving: Staying off the roads during the high-risk hours after midnight can lower your rates.
- How to use your phone: Some insurance companies check for distracted driving by monitoring whether you use your phone for mobile activities while driving.
The savings from remote car insurance can be significant. For example, some of the cheapest remote car insurance plans offer discounts of up to 30% to 40%.
Best car insurance companies for remote insurance
Here are some of the best auto insurance companies that offer telematics programs, based on The Ascent’s research:
SmartRide® nationwide
The telematics insurance program is offered nationwide Save up to 40% On car insurance, including a 10% instant discount upon registration. Nationwide SmartRide® also gets high marks for its mobile app. This program is a limited time commitment, it calculates your rebate quickly (usually within 80 days of driving data), and Your premium will not increase. (Participation in some companies’ telecommunications programs can result in… Higher costs For car insurance, which is definitely disappointing for these drivers.)
State Farm Drive is safe and saved™
State Farm’s IT software is called State Farm Drive Safe & Save™. This program gives you an instant 10% discount on the subscription, and you can earn Discounts on safe driving totaling up to 30%. Such as nationally, State Farm will not increase your premium As a result of your driving data remotely. The State Farm app on iOS was highly rated, although some Android users complained about performance and accuracy issues.
Ford insurance
Insurers aren’t the only companies entering the world of telematics insurance: Car companies are also offering insurance based on driving data. Ford now offers Ford Insure, a unique insurance program for Ford drivers. To get Ford Telematics Insurance, your Ford vehicle must be a 2020 model year or newer. Ford Insure is available in most states, promising discounts of up to 40%. It also offers savings if you bundle your auto insurance with your homeowners or pet insurance.
minimum: Are you tired of high car insurance rates, and feel like it’s out of your control? You should consider remote car insurance. This is one amazing strategy you can try in 2024 to reduce your car insurance costs — and get rewarded for safe driving. IT can reduce your car insurance premiums without eliminating your preferred basic coverages.
Our best auto insurance companies for 2024
Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurance companies across the country to bring you our top picks for auto insurance coverage. Read our free expert review Today to start.