Usage-Based Auto Insurance (UBI) — Telematics & Pay-Per-Mile
Pay based on how and how much you drive. Usage-based insurance uses your actual driving (phone app or device) to personalize price. Below we explain program types, what’s tracked, typical discounts, and privacy notes—then you can compare quotes in minutes.
Quick facts
| Topic | Fast answer |
|---|---|
| What UBI is | Pricing that uses your real driving (via smartphone or plug-in) instead of averages. |
| Common data | Hard braking/acceleration, speeding, phone use, time of day, mileage; some programs use GPS trip data. |
| Program types | Behavior-based discounts (safe habits lower price) and pay-per-mile (you pay mainly for miles). |
| Typical discounts | Sign-up/participation discount, then performance savings. Some programs advertise up to 30–40% for very safe patterns; details vary by state and carrier. |
| Can rates increase? | Some carriers may raise or lower at renewal based on driving; others only allow discounts. Check program rules for your state. |
| Last updated | October 15, 2025 |
Discounts, eligibility, and data use vary by carrier and state. Always review program disclosures before enrolling.
How UBI works (what’s tracked & how it’s scored)
Behavior-based (telematics)
App/device records risk factors—phone distraction, hard braking/rapid acceleration, speeding, night driving, and trip context. Safer patterns can earn deeper discounts at renewal.
Pay-per-mile
A base rate + per-mile charge. Great for low-mileage drivers or multi-car households where one vehicle sits most days.
Privacy & consent
Programs require consent. Many use GPS for speed/trip accuracy. You can review trips in-app and manage driver/phone permissions.
Major programs compared
| Carrier program | Type | Advertised savings (typical max) | Tracks | Notes |
|---|---|---|---|---|
| Nationwide SmartRide | Behavior-based discount | Up to 40% (after participation discount) | Braking, acceleration, time of day, mileage | Participation discount at sign-up; discounts only (no surcharge in many states) |
| Nationwide SmartMiles | Pay-per-mile | Low-mileage drivers may pay less | Miles driven (monthly) | Base rate + per-mile; same coverages as traditional policies |
| Liberty Mutual RightTrack | Behavior-based discount | Up to 30% (with enrollment discount) | Hard braking/accel., time of day, mileage, phone use | Short monitoring period; discount varies by state |
| Progressive Snapshot | Behavior-based pricing | Personalized (varies by state) | Phone use, hard braking, mileage, time of day; GPS trip data | Discounts and/or increases may apply depending on results/state |
| Allstate Drivewise | Behavior-based discount | Enrollment savings + variable ongoing rewards | Speeding, hard braking/accel., phone use, time of day | Fully mobile app; in some states risky driving can affect price |
Availability and details change by state. We’ll verify the latest program rules during quoting.
Who saves with UBI & what affects price
Good fits
- Low-mileage drivers (work from home, second vehicles).
- Daytime drivers who avoid midnight–5 a.m. trips.
- Drivers who keep phones down and avoid hard braking.
Watch-outs
- Frequent late-night or urban stop-and-go may reduce discounts.
- Some programs can raise or lower renewal price based on results.
- Location data is often collected; review each program’s privacy statement.
Pro tips to maximize savings
- Enroll all drivers on the policy so trips are attributed correctly.
- Mount your phone and use Do Not Disturb while driving to reduce distraction events.
- Plan routes to avoid harsh braking zones and late-night drives when possible.
- Validate trips in the app (mark rideshare/passenger trips if the app supports it).
Usage-based auto insurance “near me” & service areas
We help drivers compare UBI quotes “near me” across our licensed footprint and match you to the right program type.
| Licensed states | Major metros we serve |
|---|---|
| AZ, AL, TX, CA, NY, OH, FL, NC, VA, GA, OK, NM, IA, KS, MI, NE, SC, SD, WV | Phoenix, Tucson, Scottsdale, Dallas, Austin, San Antonio, Los Angeles, San Diego, New York City, Columbus, Miami, Charlotte, Raleigh, Richmond, Atlanta, Oklahoma City, Albuquerque, Des Moines, Kansas City, Detroit, Omaha, Charleston, Sioux Falls, Phoenix-West Valley |
Frequently asked questions
What driving behaviors affect my UBI score?
Can UBI make my rate go up?
Is pay-per-mile cheaper than regular insurance?
Do UBI apps track my location?
How quickly do discounts apply?
Disclosure
Blake Insurance Group LLC is an independent agency. We compare multiple insurers and program types to help you find appropriate coverage and price. Trademarks belong to their owners. Licensed insurance producer (NPR/NPN 16944666).
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Blake Insurance Group
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Blake Nwosu
Owner & Principal Agent