Apps And Auto Insurance: Discounts And Deals

Car insurance apps are becoming increasingly popular, with many top insurance providers offering apps that allow users to manage their policies, pay bills, and file auto insurance claims with ease. These apps can also be used to access auto insurance ID cards, contact roadside assistance, and utilize telematics insurance programs. Some apps even offer rate-shopping tools, digital services, safe-driving perks, and discounts.

Usage-based insurance or telematics insurance is a program that uses an in-car monitoring device or a smartphone app to track driving behaviour and offer discounts to safe drivers. This data is then used to calculate the driver's insurance rate and discounts. Insurance companies that offer this discount include Allstate, American Family, Esurance, Liberty Mutual, Metlife, Nationwide, Progressive, Safeco, State Farm, The Hartford, and Travelers.

The benefits of using car insurance apps include convenience, efficiency, and quick access to essential services. They allow users to manage their policies, file claims, and access support anytime, anywhere. Additionally, these apps often offer a range of discounts, such as those for safe driving habits, bundling multiple policies, and installing anti-theft devices.

Safe-driving perks

State Farm

State Farm offers two optional drive-tracking apps, Drive Safe & Save and Steer Clear, which provide insurance discounts based on your driving behaviour. The Drive Safe & Save app uses Bluetooth to gather information about your driving habits, and safe driving can lead to reduced insurance rates. The Steer Clear app is designed for drivers under 25 and offers training and discounts if young drivers meet the program requirements. State Farm also offers in-app claims processing, allowing you to start and track claims, upload photos of car damage, and speak to an agent.

Root

Root is an insurance company that primarily focuses on telematics (car tracking) to set insurance rates. They test your driving behaviour and set your insurance rates based on factors such as how you brake and turn, the time of day you drive, and whether you use your phone while driving. Root provides a rate quote after monitoring your driving behaviour for a few weeks during a test drive.

Allstate

Allstate offers the Drivewise app, which provides an immediate discount just for signing up, followed by potential discounts every six months for safe driving behaviour. The app also allows you to view your policy, pay bills, file claims, and access roadside assistance.

Geico

Geico offers the DriveEasy app, which automatically detects and records your driving behaviour. You can monitor your score based on distraction-free driving, braking, and other driving behaviours. Geico also provides the Vehicle Care tool, which helps you keep track of your car's maintenance and service history. The app also allows you to view insurance cards, print ID cards, and set up online billing.

Nationwide

Nationwide offers the SmartRide program, which provides a 10% discount for signing up and potential savings of up to 40% for safe driving. The app includes features such as digital ID cards, coverage modifications, and roadside assistance.

Progressive

Progressive offers the Snapshot app, which offers a discount for signing up and helps set your rate based on mileage and driving behaviour. The app records data such as acceleration, deceleration, speed, distance driven, and location.

These safe-driving perks and apps provide an opportunity for drivers to save money on their auto insurance while also encouraging safer driving habits.

Discounts for young drivers

Young drivers often face higher insurance premiums than older drivers due to their relative inexperience and higher-risk driving behaviours. However, there are several ways to secure discounts for young drivers, which can help lower insurance costs. Here are some strategies to obtain discounts for young drivers:

Good Student Discounts

Many insurance companies offer discounts for full-time students who maintain good grades. For example, Allstate provides a good student discount for unmarried drivers under 25 with at least a B- average. State Farm offers up to a 25% discount for students with good grades up to the age of 25 or their final year of school.

Safe Driving Courses

At-fault accidents on a young driver's record can significantly increase their insurance rates. To mitigate this, many insurers offer discounts for drivers who complete safe driving or defensive driving courses. Companies like Geico, State Farm, Allstate, and Travelers provide premium discounts upon completion of approved driver safety training programmes.

Telematics Devices and Apps

Telematics devices or apps monitor driving behaviour and can help young drivers secure discounts by demonstrating safe driving habits. These programs are offered by several insurance companies, including Progressive's Snapshot program and State Farm's Drive Safe and Save program. However, it's important to note that under some insurers' telematics programs, rates may increase if poor driving habits are detected.

Distant Student Discounts

If a young driver attends college away from home and leaves their car behind, they may be eligible for a lower insurance rate through a distant student discount. Some insurance companies offer this discount when the student is a certain distance away from home, typically 100 miles or more.

Vehicle Choice

The make and model of a vehicle can significantly impact insurance rates. Older vehicles may have higher premiums due to the lack of safety features like anti-theft devices and anti-lock braking systems. In contrast, a used sedan may be a more economical option than a new sports car for young drivers. It's recommended to get separate quotes for different vehicles to find the most cost-effective option.

Discounts for safe driving

Safe driving can lead to significant savings on auto insurance, and many providers are encouraging this through various apps and incentives. Defensive driving courses are a great way to improve your skills and potentially reduce your insurance costs. GEICO, for example, offers discounts for those who take an approved defensive driving course. These courses teach techniques such as maintaining a safe distance and limiting the force of impact, which can make the roads safer for everyone.

Several insurance companies now offer optional drive-tracking programs that reward safe driving with lower premiums. State Farm's "Drive Safe & Save" app monitors driving behaviour and offers discounts of up to 30% on auto insurance. Similarly, Allstate's "Drivewise" app offers an immediate discount upon signing up, followed by potential discounts every six months for safe driving. GEICO's "DriveEasy" app automatically detects and records driving behaviour, allowing users to monitor their scores in areas such as distraction-free driving and braking. Nationwide's "SmartRide" program offers a 10% discount upon signing up and potential savings of up to 40% for safe driving.

While these apps can help reduce insurance costs, it's important to note that they may also increase rates for drivers who don't meet safe driving standards. For instance, Progressive's "Snapshot" app helps set rates based on mileage and driving behaviour, which may lead to higher premiums for some.

In addition to safe driving apps, insurance providers also offer various other discounts. Allstate, for instance, provides discounts for new cars, multi-policies, paperless billing, and students. GEICO offers discounts for bundling policies and emergency deployments, while State Farm rewards safe drivers, multi-policy holders, and good students.

When choosing an auto insurance plan, it's beneficial to consider not just the app and its features but also the provider's customer service, satisfaction, and overall value.

In-app claims

State Farm's auto insurance app, for instance, allows users to initiate claims, monitor their status, and upload photos of car damage. The app also facilitates communication with an agent and assists in arranging roadside support services if needed. Similarly, the Geico app enables users to submit photos of car damage, file claims, and obtain damage estimates. Users can also request towing and emergency assistance through the app.

The Allstate app offers similar capabilities, allowing users to start claims, track their progress, and upload photos and documents related to the accident. This streamlines the claims process and expedites handling.

These in-app claims features empower users by providing a convenient and efficient way to manage their insurance claims, contributing to an improved overall customer experience.

Telematics tracking

Some benefits of telematics tracking include:

• Lower premiums for safe drivers: Insurance companies offer discounts and lower rates for customers who maintain safe driving habits, such as avoiding speeding and sudden braking.
• Improved driving skills: With feedback on their driving behaviour, drivers can identify areas of improvement and develop safer driving habits.
• Pay-per-mile insurance: Some programs offer mileage-based insurance, where you pay a base rate and an additional per-mile rate, which can be advantageous for those with shorter commutes.

However, there are also potential drawbacks to telematics tracking:

• Privacy concerns: Sharing driving data and whereabouts with insurance companies may raise privacy issues for some individuals.
• Higher premiums for risky driving: If the telematics device detects unsafe driving behaviours, such as frequent hard braking or distracted driving, your insurance rates may increase.
• Long commutes: Drivers with longer commutes may end up paying more in insurance costs as the mileage adds up.

Overall, telematics tracking can be a valuable tool for safe drivers to reduce their insurance premiums and improve their driving skills. However, it is important to carefully consider the potential benefits and drawbacks before opting into a telematics-based insurance program.

Frequently asked questions