Searching “telematics car insurance” turns up one generic answer: “plug in a device, save money.” In practice each insurer’s program works differently, and the difference that matters most is whether it can raise your rate. This guide compares three programs using each insurer’s own published terms. For the general mechanics, privacy risks and typical real-world savings, start with our usage-based insurance explainer.
This article is for educational purposes only and is not personalized insurance advice. We are not licensed insurance agents. Programs, discounts and availability change and vary by state.
The Programs at a Glance
| Progressive Snapshot | Nationwide SmartRide | State Farm Drive Safe & Save | |
|---|---|---|---|
| Advertised discount | Average $328 at completion for drivers who save; $164 average at sign-up | “Up to 40%” | “Up to 30%”; may exceed 30% in some states (capped at 30% in NY) |
| Sign-up discount | Automatic in most states (not in NY) | Instant, but applies only until the driving discount is calculated, “which could be zero” | 10% after setup is completed |
| Can your rate go up? | Yes, “only about 2 out of 10 drivers” get an increase | Nationwide says no: “not raise your rates” | Yes, may increase or decrease at each renewal |
| What it tracks | Hard braking, fast acceleration, late-night driving, time and distance; phone use in some states via the app | Miles, hard braking and acceleration, idle time, nighttime driving (midnight to 5 a.m.) | Acceleration, braking, cornering, speed, phone distraction, mileage |
| Not available | California | Varies; different criteria in California and North Carolina | California, Massachusetts, Rhode Island |
Sources: Progressive, Nationwide, State Farm.
Progressive Snapshot
Snapshot sets part of your rate based on your driving, and your renewal rate reflects your results. Progressive’s page says your rate “may increase with high-risk driving,” while noting that only about 2 out of 10 drivers actually get an increase. The $164 sign-up discount applies to the first policy period and expires at renewal; the $328 figure is credited at renewal, usually after about six months of enough driving data. Both are averages for drivers who save, not guarantees.
Nationwide SmartRide
SmartRide is the most explicit about being discount-only. Two details deserve attention: the instant enrollment discount lasts only until your driving discount is calculated, and the driving discount applies only when all drivers on the policy activate the mobile app within 30 days of the effective date and keep it active for 80 days. Nationwide also says that in Virginia and Washington the discount may decrease at renewal based on changes in driving behavior, so “discount-only” has state-level footnotes.
State Farm Drive Safe & Save
The 10% enrollment discount requires completing setup. After that, your adjustment is recalculated at each renewal (typically every six months) and can go up or down. State Farm specifically notes that if you currently get a low-mileage reduction (under 7,500 personal miles a year) and drive more, your premium may rise at future renewals. The app flags speeding at 8 mph or more over the limit and distracted phone use while moving.
What We Couldn’t Confirm
- Allstate Drivewise. Allstate’s program pages weren’t retrievable when we researched this, and third-party reviews disagree on its maximum discount and on whether it can raise rates. We’re not repeating those figures. Ask Allstate for the current terms for your state.
- Auto-Owners. We found no telematics program described on Auto-Owners’ public site. Several search queries ask about one; if you’re an Auto-Owners customer, ask your agent.
How to Choose
- Start with the downside. If you can’t tolerate a possible increase, a discount-only program such as SmartRide is the safer structure, subject to state rules. If you’re a confident, daytime, low-mileage driver, the upside programs can pay off.
- Match the tracked behavior to your habits. Late-night driving (Snapshot, SmartRide) or heavy phone use (State Farm, Snapshot in some states) can matter more than average speed.
- Compare the base premium first. A telematics discount on an expensive base rate can still cost more than a cheaper insurer with no program. Quote several carriers; see how the big four compare.
- Read the data policy before you enable an app. Our explainer covers what has happened to driving data elsewhere.
Frequently Asked Questions
Which telematics program can’t raise my rate? Nationwide says SmartRide “measures driving behavior to reward you with a discount, not raise your rates.” Progressive and State Farm both say your rate may increase at renewal. Rules vary by state, so confirm with the insurer.
Is the advertised maximum discount realistic? Treat it as a ceiling. Progressive reports an average $328 at completion for drivers who save, and Consumer Reports found a median saving of $120 across all telematics users.
Does Auto-Owners have a telematics program? We could not confirm one on its public site, so we don’t describe one here.
What about Allstate Drivewise? We couldn’t verify current terms from Allstate, so get them in writing for your state before enrolling.