Car Insurance Monitoring Devices

Would you love to save on your car insurance premiums for practicing safe driving habits? With car monitoring systems or telematic devices, that’s actually possible now. Vehicle monitoring devices or smartphone apps issued by auto insurers gather and analyze key data about the way you drive to help you save. Many times, the safer you drive, the more you can save.

Let’s take a closer look at how using one may benefit you.

What is usage-based insurance?

Usage-based insurance (UBI) is a term that goes hand in hand with your car insurance monitoring device. Usage-based insurance systems like these are frequently referred to as “pay how you drive” products. In other words, your auto insurance premium may be calculated based on how safe your driving habits are.

Rather than requiring a separate telematics device, American Family Insurance’s usage-based insurance program DriveMyWay is an easy-to-use smartphone app you can download from the App Store (Opens in a new tab) or Google Play Store (Opens in a new tab).

The app records and monitors your driving habits while you’re on the road through GPS and other location-tracking features. Details like your GPS location and driving speed are all fed into a database that records your performance on the road every time you’re driving. After a period of time, your auto insurance may reduce your premium if your driving habits are found to be safe. It’s as simple as that!

Usage-based insurance programs are also great for teenage drivers. They can make your teen more conscious of their driving habits, which can help them become more cautious behind the wheel.

How much can I save with the DriveMyWay app?

You may be able to save up 5-20% on your premium based on how safe a driver you are.** To see how much you’re saving with DriveMyWay at any given time, go on the app and you’ll instantly see your discount. This will show you the percentage on your premium you’re currently saving. This number will flex based on your driving behavior throughout your policy term and eventually, that discount can be applied when your policy renews.

What do insurance companies track with car monitoring devices & apps?

Every car insurance company will monitor different driving behaviors to calculate your discount, but for the most part, an insurance company will track the data they need to determine what kind of driver you are.

For instance, some of the factors used to calculate your discount for DriveMyWay include:

• Vehicle usage (how often you drive)
• Braking (how smoothly or abruptly you apply the brakes when stopping)
• Acceleration (how quickly or smoothly you accelerate after stopping)
• Speed
• Time of day you’re driving
• Distracted driving habits

Remember: The safer you drive, the more likely you’ll increase your eligibility for a higher discount.

How can I get a car insurance monitoring device?

Interested in car insurance monitoring devices and usage-based insurance? American Family Insurance makes it easy to get started. To qualify for DriveMyWay, you need to be insured with an American Family auto insurance policy. Then you can enroll in the program by speaking with your agent and downloading the app.

Is my privacy protected with a car insurance monitoring device/app?

Here at American Family, it’s our top priority to keep your personal information safe and confidential. We’ll protect the data collected from DriveMyWay and we won’t share it unless we’re required to by law.

Are car insurance monitoring devices and apps worth it?

It’s really up to you! But our take on it? 100% yes! Aside from saving on your policy, the greatest benefit of DriveMyWay is building safer driving habits by becoming aware of what you need to work on. You’ll make the road a safer place and maybe even put some extra change in your pocket. If you ever want to opt out of the program, it’s as simple as getting in touch with your agent.

Ready to become a safer driver and get a discount on your auto insurance premium? Connect with an American Family Insurance agent to find out how you can save on your auto insurance with DriveMyWay. Be sure to learn more about DriveMyWay and download the app, too.

**Rate will vary based on driving behavior. Unsafe driving behaviors may increase your rate. Product eligibility will vary by state, vehicle type, policy form and company underwriting the auto policy. Some restrictions may apply. The DriveMyWay rate factor applies only to these coverages, which are typical for most auto policies: bodily injury liability, property damage liability, collision and comprehensive, medical expense, and personal injury protection. Additionally, the rate factor does not apply to fixed fees that are part of the policy. To refresh your understanding of coverages, visit the Car Insurance Coverage page. Customer driving behaviors from the KnowYourDrive program were used to inform rate structure. Adding or removing drivers from a policy may impact the overall score. Households where not all eligible participants on the policy are enrolled will receive a 5% introductory discount. If you unenroll drivers after the 100-day trial period ends, we’ll still use their driving behavior at the time of unenrollment when calculating your rate.

*Customers who bundle home and auto insurance policies may save up to 23% on both policies together (as of December 2023). Discounts may vary by state, property, policy form and company underwriting the home and/or auto policy. Discounts may not apply to all coverages on a home or auto policy.