How a car insurance app can help you save money

Posted in Auto

Man uses mobile app to assist driving

You have the power to save on car insurance when you use a usage-based insurance program from your auto insurance provider. If you’re looking for options to cut back on your auto premium, you don’t drive often or you’re adding a new driver to your policy, a telematics app could be a great tool for you.

What is telematics and usage-based insurance?

Usage-based insurance is a type of auto insurance that is often powered by telematics, a type of vehicular technology that tracks your driving habits while you are behind the wheel. A telematics program uses GPS enabled devices to collect your driving data. Some programs use a device that is installed in the vehicle, also known as a “dongle,” while others use smartphone applications that utilize GPS tracking capabilities built into the phone. The car insurance app uses smart technology to detect when you’re behind the wheel.

Usage-based insurance options, like telematics, monitor factors such as mileage, smoothness, time of day, road type and other factors that contribute to your driving quality. It can be a great tool for new drivers, such as teen drivers, who are gaining experience behind the wheel. You can use the data to monitor your progress and take control of your good driving habits.

How much can you save on car insurance?

You can save money on your auto insurance by participating in a telematics app or car insurance app program. Insurers will use your driving data collected via the telematics app to calculate a discount percentage that can be taken off your insurance premium.

On average, customers can save anywhere from 10% to 30% on their auto policy by participating in a usage-based insurance program. Some insurance providers offer discounts just for enrolling in telematics programs in addition to the savings you can earn while driving.

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How your driving can earn you a discount

You’re probably wondering how insurance companies can put a price tag on good driving behavior. Insurers use proven poor driving behaviors to reward safe drivers who don’t engage in those potentially dangerous habits.

Here are some of the most common good driving behaviors that can help you save on car insurance through a telematics app:

  • Keep a safe distance from other cars to allow enough time for braking.
  • Use your mirrors and turn signal before engaging in a turn or lane change.
  • Drive the speed limit any time you are behind the wheel.

Check your score regularly and make improvements to your driving as necessary or continue what you’re doing if you are happy with your current score.

Some common poor driving habits that could hurt your telematics score and increase your likelihood of getting into an accident include:

  • Distracted driving like texting or eating behind the wheel.
  • Driving too close to the person in front of you, also known as “tailgating.”
  • Last-minute braking or hesitant braking.
  • Driving above the speed limit.
  • Neglecting to use your turn signal.

Keep your car insurance app enabled or dongle plugged in for the duration of the monitoring period to ensure you get the participation discount in your insurer’s safe driving program. Typically, programs can run from anywhere between 90 and 180 days. Some programs can run for the duration of the policy.

Other ways to save on auto insurance

There are other ways to save on your auto policy. Consider bundling your car insurance with your home or renter’s insurance to receive a discount. You could also change your vehicle to a more affordable car to insure or switch to a higher deductible on your policy.

This article is for informational and suggestion purposes only. If the policy coverage descriptions in this article conflict with the language in the policy, the language in the policy applies. Talk to your local independent agent to learn more about Grange’s auto insurance.

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