Best Usage-Based Car Insurance in 2025 [Check Out These 10 Companies] – CarInsurance.org

Best UBI: Progressive

13,283 reviews

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Pros & Cons

• Affordable Rates for Most Drivers
• Robust Digital Tools
• UBI Program Snapshot
• Generous Discounts

• Low Customer Loyalty
• Unexpected Rate Increases
• Snapshot Can Increase Rates

13,283 reviews

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2nd Best: Allstate

11,638 reviews

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Pros & Cons

• Multiple add-on coverages
• Strong financial stability
• Widespread availability

• High number of customer complaints
• Expensive car insurance rates

11,638 reviews

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3rd Best: Nationwide

3,071 reviews

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Pros & Cons

• Wide range of coverage options and add-ons for customization
• Competitive rates for good drivers with accident forgiveness
• Nationwide’s SmartRide program offers discounts for safe driving
• Strong mobile app with claims tracking and policy management

• Long wait times reported for customer service calls
• Rates can be higher for high-risk drivers
• Complaints about delays in claims processing

3,071 reviews

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The best usage-based car insurance providers are Progressive, Allstate, and Nationwide, offering rates as low as $50 a month in 49 states. Usage-based car insurance with telematics monitors driving habits and rewards safe and low-mileage drivers with lower premiums.

Our Top 10 Company Picks: Best Usage-Based Car Insurance

Progressive’s Snapshot offers competitive pricing for safe drivers, Allstate’s Drivewise provides valuable rewards, and Nationwide’s SmartRide delivers excellent service with transparent savings.

By selecting the proper provider, drivers can save money according to their actual driving habits while keeping quality car insurance coverage. Get the right car insurance at the best price — enter your ZIP code to shop for coverage from the top insurers.

Just the Basics

• The best usage-based insurance costs around $50 per month for safe drivers
• Progressive is the top pick for flexible and affordable usage-based coverage
• Telematics tracks driving habits for personalized discounts and savings

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#1 – Progressive: Top Overall Pick

Pros

• State Availability: Progressive usage-based car insurance (UBI) is in 49 states and Washington, D.C., and is available to more drivers than other UBI companies.
• Promoting Safe Driving: Progressive Snapshot UBI encourages safe driving and saves drivers over $200 per year on car insurance.
• Tech-Driven Savings: Based on our Progressive car insurance review, it offers an easy-to-use mobile app that helps drivers track habits and maximize usage-based discounts.

Cons

• Rate Adjustments: Progressive may increase rates for risky driving detected by the Snapshot program, reducing savings.
• Customer Satisfaction: Progressive Snapshot customer service is below average, and drivers have better experiences with other usage-based car insurance companies.

#2 – Allstate: Best for Safe Drivers

Pros

• Driving Behavior Rewards: Allstate offers Drivewise, which rewards safe driving with usage-based auto insurance discounts of up to 30%. Learn more in our Allstate review.
• Savings Without Switching: Drivewise users can earn the best usage-based car insurance discounts without changing their existing policy.
• Accident Forgiveness Perks: Allstate usage-based car insurance includes accident forgiveness for Drivewise users, which stops base rates from increasing after the first at-fault accident.

Cons

• Discount Variability: The best usage-based car insurance savings from Allstate depend on driving habits, meaning not all users will receive substantial discounts.
• Privacy Concerns: Drivewise requires continuous tracking, which may be a drawback for those seeking the best usage-based car insurance without extensive data monitoring.

#3 – Nationwide: Best for Smart Tech

Pros

• Smart Savings: The SmartRide program is Nationwide’s usage-based car insurance that rewards safe driving behavior with up to 40% discounts.
• Low-Mileage Benefits: Nationwide SmartMiles offers pay-per-mile pricing that doesn’t track driving habits, helping high-risk drivers save with UBI.
• User-Friendly Tracking: App provides real-time feedback to help drivers improve habits and lower usage-based car insurance rates. Read how in our Nationwide review.

Cons

• Gradual Discounts: The best usage-based car insurance savings through Nationwide may take time to reflect in policy pricing.
• Privacy Sensitivity: Some drivers may be uncomfortable with the detailed driving data tracking required by Nationwide SmartRide and SmartMiles programs.

#4 – State Farm: Best for Customer Service

Pros

• Safe Driving Incentives: The Drive Safe & Save program by State Farm encourages responsible driving with the best usage-based car insurance discounts.
• Mileage-Based Savings: Low-mileage drivers can benefit from tailored best usage-based car insurance rates based on how much they drive.
• Trusted Service: Our State Farm car insurance review highlights the company’s strong customer support, providing a smooth experience for best usage-based car insurance users.

Cons

• Discount Uncertainty: State Farm usage-based car insurance discounts vary widely based on gathered driving data, making savings unpredictable.
• Tech Dependency: Drive Safe & Save requires smartphone or telematics device usage, which may not suit all drivers.

#5 – Travelers: Best for Low-Mileage Drivers

Pros

• Safe Driving Incentives: Liberty Mutual offers RightTrack, which provides up to 30% in usage-based car insurance savings.
• Personalized Coverage: Per our Liberty Mutual car insurance review, it allows customization, ensuring usage-based car insurance users get tailored protection.
• Convenient Monitoring: The app provides easy monitoring of driving behavior, enhancing the best usage-based car insurance experience.

Cons

• State Restrictions: The RightTrack usage-based car insurance program is not offered in all states.
• Sensitivity to Data: Some drivers aren’t comfortable with the ongoing tracking of their driving habits and GPS.

#6 – USAA: Best for Military Families

Pros

• Performance-Based Discounts: Travelers IntelliDrive offers up to 30% in usage-based car insurance discounts.
• Ideal for Low Mileage: According to our Travelers car insurance review, it’s a great option for those who drive less than 8,000 miles per year.
• Tech Integration: The IntelliDrive UBI app provides real-time feedback, helping drivers improve their habits.

Cons

• Rate Fluctuations: Usage-based car insurance rates with Travelers may increase if the program records risky driving habits.
• Continuous Monitoring: IntelliDrive requires ongoing tracking may not be suitable for all drivers.

#7 – Liberty Mutual: Best for Custom Plans

Pros

• Reliable Coverage: The Signal program by Farmers includes CrashAssist, which will alert authorities if you’ve been in a crash.
• Educational Benefits: Farmers Signal enhances usage-based car insurance with real-time feedback to improve driving habits.
• Accident Forgiveness: As outlined by our Farmers car insurance review, it offers reliable accident forgiveness for UBI drivers using Signal.

Cons

• Lower Savings Potential: The 15% usage-based car insurance discount with Farmers is not as competitive as other providers.
• Tracking Concerns: Farmers usage-based car insurance collects continuous data on its drivers.

#8 – Geico: Best Digital Tools

Pros

• Real-Time Discounts: The DriveEasy program by Geico car insurance tracks driving habits and offers immediate usage-based car insurance savings.
• Digital Accessibility: Geico’s strong online tools make monitoring and managing usage-based auto insurance simple.
• Competitive Pricing: Geico consistently offers affordable usage-based car insurance quotes for drivers. Compare rates in our Geico car insurance review.

Cons

• Strict Evaluations: Geico usage-based insurance through DriveEasy may penalize abrupt braking or sudden speed changes, impacting rates.
• Savings Variability: The best Gecio UBI discounts depend on individual driving data, making potential savings unpredictable.

#9 – American Family: Best for Young Drivers

Pros

• Young Driver Benefits: The KnowYourDrive program by American Family helps young drivers develop safe habits while earning usage-based car insurance discounts.
• Bundling Flexibility: Our AmFam Insurance review details how it integrates well with other policies, allowing for additional savings on top of usage-based discounts.
• Easy-to-Use App: KnowYourDrive provides real-time feedback, helping drivers monitor and improve their habits.

Cons

• Limited Savings: The usage-based car insurance discounts with American Family may not be as high as competitors.
• Availability Issues: The KnowYourDrive program is not offered in all states, restricting access to usage-based car insurance.

#10 – Farmers: Best for Reliable Plans

Pros

• Military Savings: USAA SafePilot provides exclusive usage-based car insurance savings for military families and members.
• Customer Support Excellence: USAA is committed to customer support, earning the highest usage-based car insurance satisfaction score in J.D. Power annual surveys.
• Affordable Rates: USAA customizes savings for service members, offering the cheapest usage-based car insurance at $50 a month. Compare quotes in our USAA review.

Cons

• Eligibility Limits: USAA car insurance is only available to military members, veterans, and their families, limiting access to its usage-based savings.
• Privacy Considerations: SafePilot requires ongoing tracking, which might not be suitable for all drivers.

How to Qualify and Save With Usage-Based Car Insurance

Usage-based auto insurance programs allow drivers to save on premiums by tracking driving habits using telematics technology. These programs monitor speed, braking, acceleration, and mileage to determine discounts based on safe driving behavior. The table below compares usage-based insurance examples, highlighting the maximum discounts:

Usage-Based Car Insurance Availability & Savings by Provider

Top UBI programs, like Progressive Snapshot and Allstate Drivewise, offer savings of up to 30% in 49 states. Other companies might have bigger discounts, but availability is limited, and you may not be able to buy UBI where you live. Comparing providers ensures you maximize potential savings while maintaining the coverage you need.

Most policyholders can enroll in usage-based car insurance by downloading a mobile app or installing a tracking device in their vehicle (Read More: Is it bad to have a car insurance driver monitor?). Availability also differs by state, so choosing the right program depends on location, driving habits, and potential savings.

How Usage-Based Car Insurance Works

Usage-based car insurance, or UBI, is a type of car insurance coverage that determines premiums based on actual driving habits rather than fixed demographic factors like age, gender, or credit score. The system applies telematics technology to monitor how you drive, when you drive, and how much you drive so that insurers can provide personalized rates.

Drivers who demonstrate safe behavior or drive less can be rewarded with reduced premiums, thus making UBI a cost-saving and adaptable option compared to conventional insurance.

UBI works by collecting driving data through a telematics device installed in the vehicle or a mobile app. Insurers use this data to evaluate several key factors:

• Mileage: The fewer miles you drive, the lower your accident risk, which can reduce your premium.
• Speeding: Consistently driving over the speed limit can result in higher rates due to increased accident probability.
• Braking and Acceleration: Harsh braking and rapid acceleration indicate aggressive driving, which insurers view as riskier behavior. Smooth driving can help lower costs.
• Time of Day: Driving late at night or during high-risk hours increases the likelihood of accidents and may affect rates.
• Phone Usage: Some applications track distracted driving by monitoring phone usage when the car is moving, possibly affecting rates.

Although not tracked by UBI, your location still impacts rates. Driving in high-traffic urban areas presents a greater risk than in rural areas. Low-mileage and safe drivers will gain the most from UBI, whereas drivers in big cities or with more aggressive driving behaviors might experience minimal savings or even higher costs.

Learn More. How much insurance do I need for my car?

How Insurers Gather Driving Data for Usage-Based Car Insurance

Insurance providers use different technologies to collect driving data for usage-based car insurance. This insurance technology offers a more accurate risk assessment for customized premiums. Telematics devices and mobile applications are popular options, but insurers also utilize connected vehicles and artificial intelligence (AI) system-based solutions to track driving habits.

• Telematics Devices: Many insurers provide plug-in devices that connect to a vehicle’s OBD-II port, tracking factors like acceleration, braking, and mileage. These devices offer precise data collection but require installation.
• Mobile Apps: Smartphone apps utilize GPS and motion sensors to track driving habits, such as speed, phone use, and travel patterns. They are convenient but can be a privacy issue.
• Connected Vehicle Systems: Modern vehicles with built-in telematics send driving information directly to insurers without the use of additional devices. The process is done smoothly while utilizing the vehicle’s existing technology.
• AI-Powered Dashcams: Certain UBI programs incorporate AI-fitted dashboard cameras that evaluate driver alertness, identify aggressive and distracted driving, and offer real-time feedback to improve driving.
• Third-Party Data Aggregators: Certain insurers partner with data providers that analyze driving behavior from multiple sources, such as vehicle manufacturers and mobile apps, to refine risk assessments.

The best usage-based car insurance policies help drivers save money by adjusting premiums based on driving habits and mileage. Unlike traditional full coverage car insurance with fixed rates, usage-based plans track driving habits to provide lower costs for lower-risk drivers.

The Best Usage-Based Car Insurance Rates and Discounts

Monthly premiums for minimum and full coverage car insurance vary significantly among usage-based insurance companies. USAA SafePilot offers the cheapest rates, with $50 per month for minimum coverage and $130 for full coverage, making it the best for cheap car insurance.

Car Insurance Monthly Rates With Usage-Based Discount

On the higher end, Liberty Mutual RightTrack charges $70 per month for minimum coverage and $170 for full coverage, which is among the priciest types of car insurance.

Leading usage-based car insurance companies offer discounts that can be combined with usage-based driving programs like Geico DriveEasy, State Farm Drive Safe & Save, and Progressive Snapshot to further lower the cost of auto insurance.

Choosing the best category of car insurance among UBI providers depends on your driving behavior and annual mileage. Progressive, Allstate, and State Farm usage-based insurance programs have competitive rates in more states, while USAA remains the cheapest usage-based car insurance for military personnel.

Exploring Other Types of Usage-Based Car Insurance

Usage-based car insurance offers a personalized approach to premiums by tracking mileage and driving behavior through telematics. This model helps drivers save money based on how often and how safely they drive. However, it is not the same as pay-per-mile or pay-as-you-go insurance.

• Pay As You Go (PAYG): Charges premiums based on total mileage, ideal for low-mileage drivers like remote workers. It promotes reduced driving but involves tracking, raising privacy concerns.
• Pay How You Drive (PHYD): Rewards safe driving by monitoring speed, braking, and acceleration. Responsible drivers benefit from lower rates, but occasional hard braking may increase costs.
• Pay As You Drive (PAYD): Combines mileage and behavior tracking for a personalized rate. It offers affordability with safety incentives but may have complex pricing and require constant monitoring.

UBI offers a cost-effective alternative to traditional insurance by tailoring rates to individual driving habits, but pay-per-mile car insurance strictly tracks mileage, giving high-risk drivers a chance to save by not tracking driving habits.

While they encourage safer practices and potential discounts, they also entail monitoring, which may or may not be everyone’s cup of tea. Having the knowledge of the pros and cons of each kind would help the drivers choose the most suitable coverage for them

Read More: Safe Driving Means Checking Your Bad Attitude at the Car Door

Advantages and Drawbacks of Usage-Based Car Insurance

Usage-based auto insurance uses actual driving behavior to compute premiums with the help of telematics devices and mobile applications. Unlike traditional factors that affect the price of car insurance, such as age and credit score, UBI recognizes and rewards safe driving with potential savings.

Here are some key benefits for drivers seeking fair and affordable coverage:

• Lower Costs: Best suited for retirees, remote workers, or occasional drivers who can save a lot of money by driving less.
• Fairer Pricing: Instead of flat-rate premiums, costs are based on actual driving behavior, making insurance more equitable.
• Encourages Safer Driving: Monitoring speed, braking, and mileage assists drivers to enhance performance and reduce the risk of accidents.
• Insights and Discounts: Smartphone apps give real-time comments and may unlock additional discounts for consistent safe driving.
• Additional Safety Features: Some policies include crash detection, roadside assistance, or GPS tracking for stolen vehicles.

Though it provides individualized pricing, there are some considerations before signing up. Here are some potential drawbacks to consider:

• Privacy Concerns: The providers track location, speed, and driving habits, which raises the issue of security and use of this information.
• Rate Hikes: Frequent hard braking, speeding, or nighttime driving can lead to increased charges instead of savings.
• Inconsistent Scoring Methods: Different insurers use proprietary algorithms, making it hard to anticipate how driving will influence rates.
• Technical Issues: Glitches, connectivity issues, or device malfunctions may lead to incorrect data and unfair premium adjustments.
• External Factors: Weather conditions, road conditions, or sudden unforeseen stops might deter scores negatively.

Usage-based insurance is an affordable and equitable option for low-mileage, safe drivers who need to lower their premium rates. It might be less desirable, though, for nighttime or congested traffic drivers due to privacy issues and unpredictable pricing.

Compare UBI programs thoroughly before enrolling and learn how companies set rates. Evaluating your driving habits and risk factors will help determine if UBI is the right choice for you.

A Smarter Way to Save on Car Insurance Coverage

The best usage-based car insurance programs help drivers save on premiums by basing rates on driving habits and mileage rather than fixed pricing. Progressive Snapshot, Allstate Drivewise, and Nationwide’s SmartRide use telematics technology to set the best UBI rates in more states.

Where can you get cheap, full coverage car insurance? With average premiums of $50 per month, UBI offers a cost-effective option for safe or low-mileage drivers. UBI drivers can take advantage of customized pricing, including possible discounts for being responsible drivers.

The programs do, though, need participants’ consent to monitor their behavior, which may raise privacy concerns for some. Costs may also vary depending on a driver’s driving, meaning reckless behaviors might increase insurance costs. In spite of all that, usage-based insurance remains an affordable way for drivers to reduce their monthly premiums.

When you’re ready to see how much you can save on your car insurance, enter your ZIP code into our free comparison tool.