Cheap Auto Insurance Companies That Don’t Monitor Your Driving in 2023
Even though usage-based insurance is popular in the U.S., there are still auto insurance companies that don't monitor your driving. In fact, you are not obliged to let your insurance company track your driving. You can still get a policy with almost any company without participating in a UBI program.
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Cynthia Lanctot
Licensed Agent
Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.
Licensed Agent
UPDATED: Jul 20, 2022
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jul 20, 2022
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Usage-based insurance is not a requirement for the majority of companies
- Usage-based insurance allows insurance providers to track data to determine how safe you are on the road
- Some drivers do not like the risk involved with allowing insurance companies to track their smartphones and vehicles to gather data
Though usage-based insurance (UBI) is ubiquitous in the U.S., you are not required to allow your insurance company to track you as you drive. Companies advertise UBI car insurance coverage options as a way for policyholders to save money on insurance. Still, this type of tracking can pose severe risks in terms of personal privacy.
You’re not alone if you are uncomfortable with your insurance company tracking you and your vehicle to collect information. And fortunately, you can still get a policy with virtually any insurance company without participating in a UBI program. Let’s learn more about auto insurance companies that don’t monitor your driving.
Do all car insurance companies monitor your driving?
Many insurance providers, especially the big names in car insurance, offer usage-based insurance options, or telemetrics-based car insurance, as a way for policyholders to save money when they drive safely.
The table below shows insurance companies and whether they offer a UBI plan to policyholders.
Insurance
CompanyUsage-Based Driving
Device/App DiscountDiscount
Percentage
21st Century No -
AAA Yes Not Available
Allstate Yes 20%
American Family Yes 40%
Ameriprise No -
Amica No -
Country Financial No -
Esurance Yes 25%
Farmers No -
Geico Yes Not Available
Liberty Mutual Yes 30%
MetLife Yes 15%
Nationwide Yes 40%
Progressive Yes 20%
Safe Auto No -
Safeco Yes 30%
State Farm Yes 50%
The General No -
The Hanover No -
The Hartford Yes 10%
Travelers Yes 30%
USAA Yes 5%
While some UBI programs, like State Farm’s Drive Safe & Save, allow policyholders to save as much as 50% on coverage, you could be sacrificing your privacy and lower rates depending on the nature of your driving.
Still, no insurance company is allowed to monitor your driving without your expressed consent. So if you’re worried about your insurance company knowing how far or how fast you drive, that information won’t be available to them unless you sign up for UBI.
Telemetrics-based car insurance typically monitors the distance you drive and how you operate your car concerning speed, stopping and starting, and more. Your insurance company may offer you a device that you insert into your vehicle, or the company may track you using a UBI app. According to NAIC, UBI is often powered by in-vehicle telematics technology that is self-installed using a plug in-device or already integrated into original equipment by car manufacturers.
You should know more about the specifics if you are interested in participating in a UBI program with your insurance company. Learning more about UBI options will help ensure you would benefit from the program before enrolling.
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Who would benefit from usage-based insurance?
Not all drivers will benefit from using a car insurance monitoring device with their insurance company. People who get the best discounts from using UBI are individuals who drive safely and don’t drive very far. Because of this, some students, most retirees, and specific drivers who work from home or often use public transportation are ideal candidates.
Usage-based insurance will likely work for you if:
- You drive fewer than 11,000 miles per year.
- You drive gently, not braking hard or driving at high speeds.
- You are comfortable with your insurance company knowing your daily driving habits and location data.
If the above information applies to you, a UBI initiative with your insurance company may be a great fit. However, if any of the points above don’t quite fit, you may want to consider turning down the telemetrics-based insurance program your insurer offers.
What are the pros and cons of usage-based insurance?
UBI programs with insurance companies offer some positives and negatives. Depending on your unique situation, you could land in either camp regarding whether a UBI insurance plan would work for you.
The table below highlights some significant benefits and drawbacks of a telemetrics-based insurance plan.
Pros Cons
Good drivers can get cheaper rates due to safe driving habits If you have a longer commute and are a safe driver, you may not be eligible for lower rates.
Usage-based plans partially justifies auto insurers pricing quotes based on non-driving factors Driving at night could put you at risk for higher-than-expected insurance rates
You may be encouraged to use your car less, helping the environment and reducing the likelihood of a collision. Insurance companies can track your location and your usual routes in terms of commutes.
While the benefits could include cheaper car insurance rates and eco-friendly commute options, the drawbacks may include higher rates and a lack of privacy.
How do usage-based insurance plans impact insurance claims?
While a UBI has benefits and drawbacks, allowing an insurance provider to monitor and retrieve data related to your driving habits could have severe risks regarding collisions and naming the at-fault driver.
Suppose you were to get in a car accident. In that case, your car insurance provider could use the information from your tracking device to determine whether you were partially or fully responsible for the accident. Drivers who contributed to the nature of the crash could automatically suffer higher rates and receive a higher percentage of fault in the collision.
If applicable, auto insurance companies may share the information about your driving and any accidents with other insurance providers. When this happens, you could pay more out of pocket for accidents, even if law enforcement personnel did not consider you at fault.
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Do usage-based programs get good reviews?
If you’re considering taking part in a UBI program, you may want to read some reviews that other policyholders have posted online. Car insurance tracking device reviews can be negative and often cite that insurance companies use a driver’s specific commute data and personal information to force them to pay higher rates for coverage.
UBI plans only help around 45% of participants save money on insurance premiums, with the rest paying the same rates or higher rates for the same coverage.
Additionally, while most participants state they are satisfied with their UBI program, the majority of UBI participants also say they do not know whether they have experienced much of a benefit from switching to a telemetrics option.
Car Insurance Companies That Monitor Your Driving: The Bottom Line
You may want to steer clear altogether if you’re on the fence about participating in a UBI plan. While there’s a chance you could pay lower rates, there’s also a chance you could pay higher rates and be penalized for accidents that would otherwise not be considered your fault.
Big-name insurance companies may be able to offer you as much as 50% off your insurance premium, but this will likely only apply if you drive infrequently and are incredibly conservative behind the wheel.
You may be able to get cheaper car insurance in other ways, like asking your insurance provider if you’re eligible for any discounts on coverage. Another great way to save on auto insurance rates is to shop online and compare quotes from multiple providers.
Compare Quotes From Top Companies and Save
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Cynthia Lanctot
Licensed Agent
Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.
Licensed Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.