Finest usage-based automotive insurance coverage 2026

Utilization-based insurance coverage generally is a good possibility in case you’re a secure, low-mileage driver. However some insurers can increase your charge in case your driving habits are thought-about dangerous.

That can assist you discover one of the best usage-based (UBI) automotive insurance coverage, Yahoo Finance analyzed 20 main insurers primarily based on six key elements: UBI enrollment low cost, most UBI low cost financial savings, whether or not dangerous driving with UBI can increase your premium, charge competitiveness, and general protection and low cost choices. Under are the businesses that topped our rankings.

Study extra: Finest automotive insurance coverage firms general

Farm Bureau’s flagship telematics program, Driveology, has an computerized 10% enrollment low cost and the potential to earn as much as 50% off for secure driving — one of many highest most reductions in our evaluation. Simply as necessary, Driveology doesn’t increase your charge for dangerous driving. Farm Bureau’s UBI packages could also be referred to as Drive Pattern or FB Drives in numerous states. Reductions and availability can differ by chapter.

Farm Bureau scored close to the highest of our evaluation for finest senior automotive insurance coverage.

Farm Bureau execs and cons

Execs

• Highest most UBI low cost

• Doesn’t increase charges for dangerous driving

• Aggressive full protection charges

Cons

• Common price for full protection automotive insurance coverage: $151

• Availability: Varies by state and regional chapter

• Crash Community grade for claims dealing with: B+ (varies by chapter)

• Protection choices: 6 choices

• Obtainable reductions: 8 sorts

• Digital expertise rating: 1.8 (out of 5)

Study extra: Farm Bureau automotive insurance coverage evaluate

USAA’s SafePilot program is second on our listing of finest usage-based automotive insurance coverage. It features a 10% sign-up low cost and as much as a 30% renewal low cost primarily based on driving habits. Like Farm Bureau, USAA stands out as a result of SafePilot doesn’t increase charges for dangerous driving.

USAA was the highest insurer in our rankings for finest automotive insurance coverage for customer support.

USAA execs and cons

Execs

Cons

• Common price for full protection automotive insurance coverage: $168

• Availability: Nationwide (however restricted to army members, veterans, and eligible household)

• Crash Community grade for claims dealing with: D+

• Protection choices: 13 choices

• Obtainable reductions: 15 sorts

• Digital expertise rating: 4.75 (out of 5)

Study extra: USAA automotive insurance coverage evaluate

With Vacationers’ IntelliDrive user-based insurance coverage program, you possibly can obtain a ten% enrollment low cost and as much as 30% off at renewal for secure driving. Nevertheless, in contrast to Farm Bureau and USAA, IntelliDrive can enhance your premium in case your driving habits are deemed dangerous. (There are a number of exceptions — in Washington, D.C., and states like Montana, North Carolina, and Virginia, dangerous driving received’t increase your charge. And in some states, the utmost low cost could also be increased.)

Vacationers additionally scored among the many prime insurers in our evaluation for one of the best rideshare insurance coverage.

Vacationers execs and cons

Execs

Cons

• Common price for full protection automotive insurance coverage: $183

• Availability: Nationwide

• Crash Community grade for claims dealing with: C

• Protection choices: 14 choices

• Obtainable reductions: 14 sorts

• Digital expertise rating: 4.65 (out of 5)

Study extra: Vacationers automotive insurance coverage evaluate

Nationwide’s SmartRide program ranked #1 in JD Energy’s 2025 usage-based insurance coverage buyer satisfaction examine. It additionally earned pretty excessive marks in our rating of one of the best usage-based insurance coverage choices. Drivers obtain a 5% enrollment low cost and may earn as much as 40% off at renewal primarily based on secure driving habits. Like Farm Bureau and USAA, SmartRide doesn’t increase your premium for dangerous driving. Nationwide additionally gives SmartMiles, a separate pay-per-mile program for low-mileage drivers.

Nationwide scored among the many prime insurers in our evaluation for the finest senior automotive insurance coverage.

Nationwide execs and cons

Execs

• Nice most UBI low cost

• Doesn’t increase charges for dangerous driving

• Affords separate pay-per-mile possibility

Cons

• Common price for full protection automotive insurance coverage: $199

• Availability: Nationwide

• Crash Community grade for claims dealing with: C

• Protection choices: 14 choices

• Obtainable reductions: 9 sorts

• Digital expertise rating: 4.6 (out of 5)

Study extra: Nationwide automotive insurance coverage evaluate

State Farm rounds out our listing of one of the best usage-based automotive insurancecompanies. It has a ten% enrollment low cost, and you’ll earn as much as 30% off at renewal primarily based on elements like braking, pace, and mileage. Importantly, Drive Protected & Save won’t enhance your charge for dangerous driving. Your low cost can fluctuate from time period to time period primarily based in your driving information, however this system received’t enhance your base charge.

State Farm additionally has among the finest automotive insurance coverage for customer support, in line with our evaluation.

State Farm execs and cons

Execs

Cons

• Common price for full protection automotive insurance coverage: $190

• Availability: Nationwide

• Crash Community grade for claims dealing with: C-

• Protection choices: 13 choices

• Obtainable reductions: 16 sorts

• Digital expertise rating: 4.7 (out of 5)

Study extra: State Farm automotive insurance coverage evaluate

We evaluated 20 main insurance coverage firms to find out which supplied one of the best usage-based insurance coverage packages. The highest spot went to Farm Bureau, which earned 5 stars (out of 5) because of its excessive most low cost and coverage of not elevating charges for dangerous driving. USAA adopted with 4.6 stars, then Vacationers (4.5), Nationwide (4.4), and State Farm (4.4).

See the usage-based insurance coverage star scores for all of the insurers we analyzed beneath.

Utilization-based automotive insurance coverage (UBI) packages use telematics know-how to trace your driving habits and regulate your premium accordingly. To take part, you sometimes obtain a smartphone app or plug a tool into your automotive’s onboard diagnostics port. This system then screens elements akin to mileage, braking, acceleration, time of day pushed, pace, and cellphone use whereas driving.

After a monitoring interval, it’s possible you’ll earn a reduction primarily based in your driving rating. You sometimes get an enrollment low cost that takes impact instantly, with the choice to earn as much as the utmost low cost for secure driving. However it’s value noting — even among the finest UBI packages will enhance your charge for dangerous driving; it varies by insurer.

There are two principal sorts of UBI packages:

• Pay per mile: Your charge relies largely on what number of miles you drive.

• Pay the way you drive: Your premium displays your driving habits, not simply mileage.

Automotive insurance coverage primarily based on utilization could also be value it in case you’re a low-mileage, typically secure driver and don’t thoughts sharing driving information. For those who continuously pace, brake onerous, or drive late at night time, a standard coverage might be a greater match.

Even in case you enroll in a usage-based program, you’ll nonetheless want the correct core protection in place. Almost each insurer gives these core coverages:

Past the fundamentals, non-obligatory add-ons can strengthen your coverage. Relying on the insurer, you might be able to add:

Study extra: Most typical sorts of automotive insurance coverage defined

Throughout the 20 insurers evaluated, full-coverage charges assorted broadly. Some firms, excessive on our usage-based listing, like Farm Bureau and USAA, have a tendency to cost at or beneath the nationwide common. Different prime UBI insurers, akin to Nationwide and State Farm, typically fall nearer to the center of the pack, in line with information from the auto insurance coverage market Savvy Insurance coverage Options.

Study extra: Least expensive full protection automotive insurance coverage

Selecting the insurer that gives the most important UBI low cost doesn’t assure the bottom charge. Insurers calculate your beginning charge utilizing a mixture of private, automobile, and location-based elements. The burden assigned to those elements varies from insurer to insurer.

Listed here are the widespread elements automotive insurance coverage suppliers use when calculating charges:

Study extra: Automotive insurance coverage charges are climbing. Listed here are 4 explanation why and 11 methods to avoid wasting.

Listed here are suggestions for locating one of the best usage-based auto insurance coverage.

Earlier than enrolling in any telematics program, be sure that the underlying coverage works for you. UBI reductions apply to your premium, however they don’t change core coverages.

Additionally, test whether or not the UBI program can increase your charges for dangerous driving. Some insurers solely provide reductions. However others will enhance your charge in the event that they deem you a dangerous driver.

As you examine automotive insurance coverage quotes for UBI, have a look at:

• The enrollment low cost you get only for signing up

• The utmost potential low cost

• Whether or not dangerous driving can enhance your premium

• How lengthy the monitoring interval lasts

An organization with a smaller most low cost however no penalty for dangerous driving could really feel safer than one providing a bigger upside with draw back threat.

Study extra: How a lot automotive insurance coverage protection do I would like?

Each insurer tracks habits in a different way. Some weigh onerous braking closely. Others focus extra on mileage or cellphone use. Ask how your driving is scored and whether or not your information resets at renewal. If privateness issues to you, evaluate how the corporate shops and makes use of telematics information earlier than enrolling.

Some automotive insurance coverage reductions are robotically utilized as you fill out a quote type, however others it’s important to ask about. For instance, you often have to talk to an agent to get a great pupil low cost or pupil away low cost. Asking an agent in case you’re eligible for reductions not already utilized can assist you discover extra methods to cut back your auto insurance coverage premiums.

Study extra: Finest automotive insurance coverage reductions

UBI reductions can change from time period to time period. Examine your renewal provide rigorously to see how your driving rating affected your premium. In case your charge will increase, it could be time to match quotes once more or choose out of this system.

Additionally, in case you make adjustments throughout the 12 months, akin to shopping for a automotive, be sure that to regulate your coverage accordingly. You might also wish to store round once more and swap automotive insurance coverage firms if it is smart to your funds.

Study extra: Does shopping for automotive insurance coverage on-line prevent cash?

Many use-based insurance coverage packages provide you with a small enrollment low cost (usually 5% to fifteen%), with the choice to earn a most low cost of 25% to 50% for constantly secure driving. Your precise low cost will depend on your mileage and driving habits throughout the monitoring interval.

Sure. Allstate gives a telematics program referred to as Drivewise. In our evaluation, Allstate scored 2.1 stars for usage-based insurance coverage. Whereas it gives an enrollment low cost and the potential for financial savings, its middle-of-the-road reductions and talent to extend your charge for dangerous driving lowered its general rating.

That will depend on the insurer, however most usage-based packages monitor how a lot you drive and the way you drive. Frequent information factors may embrace mileage, onerous braking, speedy acceleration, pace, time of day you’re on the street, and whether or not you employ your cellphone whereas driving. Your driving information is then used to calculate a rating that determines your low cost (or, in some instances, whether or not your charge may enhance).

Tim Manni edited this text.

To determine one of the best usage-based automotive insurance coverage packages, Yahoo Finance evaluated 20 main insurers that provide telematics-based insurance policies. Every firm was scored utilizing a standardized rubric targeted particularly on what issues most in a UBI program: how a lot it can save you, whether or not your charge can enhance for dangerous driving, and the way aggressive the insurer’s base pricing is.

All elements have been transformed to a standardized level scale and mixed right into a composite rating. Most low cost potential and charge impression insurance policies carried the best weight, adopted by enrollment reductions, charge competitiveness, and general protection flexibility.

1. Most potential low cost: 30% of rating. We evaluated the very best publicly marketed low cost obtainable by every insurer’s usage-based automotive insurance coverage program. Firms providing bigger most financial savings earned increased scores.

2. Price impression coverage: 20% of rating. Insurers that don’t enhance premiums for dangerous driving acquired full credit score. Applications that will impose surcharges earned zero factors on this class.

3. Enrollment low cost: 15% of rating. Many UBI packages provide an computerized low cost only for signing up. Bigger enrollment reductions earned extra factors.

4. Price competitiveness: 25% of rating. Common charge estimates have been supplied by Savvy Insurance coverage Options (“Savvy”), which operates a nationwide insurance coverage market and licensed company. Estimates are generated utilizing Savvy’s in-house machine studying fashions primarily based on greater than 3 million information factors throughout main insurers.

For this evaluation, charges have been modeled utilizing a normal “full protection” profile. Full protection automotive insurance coverage consists of legal responsibility insurance coverage, any state-required protection, plus collision and complete protection. Insurers with extra aggressive full protection charges earned increased scores.

5. Protection choices and general low cost breadth: 10% of rating. This rating additionally thought-about each the overall variety of protection choices and reductions obtainable. Firms providing broader coverage flexibility and reductions acquired extra factors.

Except acknowledged in any other case, the estimates above are supplied by Savvy Insurance coverage Options (“Savvy”). Savvy operates a market for dwelling and auto insurance coverage, plus an company licensed in all 50 states. Estimates are generated utilizing Savvy’s in-house machine studying fashions primarily based on over 3 million information factors, and embrace greater than 15 of the most important insurance coverage firms in Savvy’s nationwide information set. This consists of information from greater than 2 million insurance coverage accounts linked by Trellis Join, an in-house know-how permitting customers to “hyperlink” their insurance coverage accounts earlier than looking for insurance coverage, and tens of 1000’s of insurance policies certain by Savvy’s personal brokers. It takes under consideration a myriad of things to create predictions, akin to:

• Policyholder age

• Variety of automobiles

• ZIP code

• Car age

• Insurer

• … and extra

Savvy creates estimates by operating fashions in opposition to a number of inputs to the parameters of curiosity. As an illustration, the “teen driver” estimates have been created by adjusting the policyholder age enter into the pricing mannequin whereas preserving all different variables regular from the baseline for “full protection.” The fashions allow hyper-personalized estimates that keep in mind a plethora of consumer attribute permutations (e.g., teen drivers in particular states, teen drivers with new automobiles, teen drivers in particular states with new automobiles) to offer people with a novel and tailor-made expertise. The charts above are a subset of the sorts of personalization Savvy can do.

The next are definitions utilized by Savvy when offering its charge estimates for numerous sorts of protection.

Full protection automotive insurance coverage: A coverage with complete, collision, and legal responsibility protection.

Common policyholder: A 48-year-old driver who owns a 13-year-old automobile and lives in an average-income ZIP code.

Senior driver: A 70-year-old policyholder with full protection automotive insurance coverage.

Good driver: Drivers throughout all protection sorts, automobile sorts, and places who don’t have any tickets, accidents or DUIs.