Cheap Auto Insurance Companies That Don’t Monitor Your Driving in 2023

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.

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.

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.

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.