Carrier vs. Carrier Comparisons
The best usage-based car insurance providers are Progressive, Liberty Mutual, and Nationwide. These companies stand out with their innovative approach to personalizing rates based on driving behavior.
Progressive Snapshot gives substantial discounts for safe driving, and Nationwide SmartRide offers flexible options that reward good habits. Read our Liberty Mutual RightTrack review to find out about its competitive perks for safe drivers.
| Company | Rank | Bundling Discount | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
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#1 | 10% | A+ | Innovative Programs | Progressive |
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#2 | 25% | A | 24/7 Claims | Liberty Mutual |
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#3 | 20% | A+ | Comprehensive Plans | Nationwide |
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#4 | 17% | B | Reliable Service | State Farm |
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#5 | 25% | A++ | Affordable Rates | Geico |
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#6 | 13% | A++ | Industry Experience | Travelers |
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#7 | 10% | A++ | Military Support | USAA |
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#8 | 20% | A | Extensive Discounts | Farmers |
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#9 | 25% | A | Family-Oriented | American Family |
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#10 | 25% | A+ | Widest Presence | Allstate |
Choosing one of these cheap usage-based insurance (UBI) companies can help you secure the best rates on coverage tailored to your driving patterns.
Protect your vehicle from whatever the road throws at it by entering your ZIP code into our free comparison tool above to see affordable car insurance quotes.
What You Should Know
- Usage-based plans adjust costs based on your driving habits
- Drivers can save with usage-based insurance starting at $38/month
- Progressive Snapshot offers the best usage-based car insurance in 47 states
#1 – Progressive: Top Overall Pick
Pros
- Innovative Programs: Progressive is recognized as offering some of the best usage-based car insurance options with its Snapshot program.
- Customizable Coverage: Progressive allows policyholders to tailor usage-based insurance coverage. Learn more in our Progressive review.
- Strong Digital Tools: Progressive’s digital tools, including the Snapshot mobile app, make it one of the best UBI providers for tech-savvy customers.
Cons
- Mixed Customer Reviews: While Progressive offers some of the best usage-based car insurance, customer service experiences can be inconsistent.
- Higher Rates for Certain Drivers: Even with some of the best usage-based car insurance programs, Progressive still raises rates for bad driving habits.
#2 – Liberty Mutual: Best for 24/7 Claims Service
Pros
- 24/7 Claims Processing: Liberty Mutual is considered one of the most convenient for filing usage-based car insurance claims.
- Wide Range of Add-Ons: Liberty Mutual offers various add-ons or usage-based coverage, such as accident forgiveness and better car replacement.
- Local Agent Support: Based on our Liberty Mutual review, the company provides strong local agent support for customers seeking UBI with personalized service.
Cons
- Higher Premiums: Liberty Mutual usage-based policies can be more expensive than those of other insurers.
- Complex Discounts: The complex discount structure can make it challenging to fully benefit from the best usage-based car insurance Liberty Mutual has to offer.
#3 – Nationwide: Best for Comprehensive Plans
Pros
- Comprehensive Plan Options: Our Nationwide review explores the comprehensive UBI options available.
- Low-Mileage Options: Nationwide offers a low-mileage UBI option for higher-risk drivers with imperfect driving records.
- On Your Side Review: Nationwide’s annual On Your Side Review helps ensure customers are getting the best usage-based car insurance coverage to meet their current needs.
Cons
- Limited Availability of Some Services: While Nationwide is among the best UBI providers, certain discounts and specialized coverages may not be available in all states.
- Pricing Variability: Premiums can vary significantly with Nationwide usage-based car insurance, depending on location.
#4 – State Farm: Best for Reliable Service
Pros
- Reliable Service: State Farm’s commitment to reliable service makes it one of the best usage-based car insurance providers. Find out more in our State Farm review.
- Extensive Local Presence: State Farm’s large network of local offices ensures personalized service with usage-based car insurance.
- Big Usage-Based Discounts: State Farm Drive Safe & Save UBI can reduce rates by up to 30% for drivers with good habits.
Cons
- Lower Digital Experience: Although State Farm offers some of the best usage-based car insurance, its digital tools are less advanced than those of its competitors.
- Below-Average Financial Ratings: Despite having one of the best UBI programs, State Farm’s A.M. Best rating is low when compared to the competition.
#5 – Geico: Best for Affordable Rates
Pros
- Affordable Rates: Geico DriveEasy offers some of the best usage-based car insurance with affordable rates, especially for good drivers.
- User-Friendly App: Geico's mobile app stands out for its ease of use, making it an excellent choice for those who prefer managing and buying auto insurance online.
- 24/7 Customer Support: Geico’s 24/7 customer support makes it a reliable choice for the best usage-based car insurance, ensuring help is always available.
Cons
- Limited Local Agent Network: While Geico offers some of the best usage-based car insurance, it has fewer local agents, which might be a drawback for some.
- Less Personalized Service: Geico’s focus on digital services can lead to less personalized experiences for UBI drivers.
#6 – Travelers: Best for Industry Experience
Pros
- Industry-Driven Approach: Travelers focus on financial strength and industry growth make it one of the most reliable usage-based insurance companies.
- Specialized Programs: With programs like IntelliDrive, Travelers stands out as one of the best usage-based car insurance companies.
- Flexible Coverage: Travelers offers highly flexible usage-based insurance policies. Read more in our Travelers review.
Cons
- Higher Rates for Certain Drivers: Even though Travelers offers some of the best usage-based car insurance, premiums can be higher for younger or high-risk drivers.
- Less Competitive Discounts: The discount offerings from Travelers may not be as extensive, even with the best usage-based car insurance programs.
#7 – USAA: Best for Military Support
Pros
- Tailored for Military Members: USAA’s specialized coverage makes it one of the cheapest usage-based auto insurance providers for military members and their families.
- Exceptional Customer Service: USAA delivers exceptional service, making it one of the best usage-based car insurance companies. Discover more in our USAA review.
- Comprehensive Coverage Options: USAA’s wide range of coverage options ensures it remains among the best usage-based car insurance providers.
Cons
- Membership Restrictions: Usage-based insurance with USAA is only available to military members, veterans, and their families.
- UBI With Another Company: Drivers must buy USAA usage-based insurance through its partner, Noblr. Read our Noblr insurance review to learn more about the company.
#8 – Farmers: Best for Extensive Discounts
Pros
- Extensive Discount Options: Farmers offers a wide array of discounts, making it one of the cheapest usage-based car insurance providers.
- Strong Local Agent Network: According to our Farmers review, the company has a network of local agents who provide personalized service for usage-based customers.
- Customizable Coverage: Farmers’ customizable UBI policies make it a top choice, allowing customers to build coverage that suits their specific needs.
Cons
- Higher Premiums: Even with some of the best usage-based car insurance options, Farmers is known for higher-than-average premiums, which may not suit all budgets.
- Complex Policy Structures: The complexity of Farmers’ policies can be challenging, even for those seeking the best usage-based car insurance.
#9 – American Family: Best for Families
Pros
- Family-Focused Coverage: Explore how usage-based insurance is tailored for families with multiple drivers in our American Family review.
- Strong Local Presence: With a robust network of local agents, AmFam offers personalized service, making it a top choice for usage-based auto insurance.
- Customer-First Approach: American Family’s commitment to customer satisfaction positions it among the best usage-based car insurance providers for families.
Cons
- Regional Availability: AmFam usage-based car insurance is regional and may not be available in your state.
- Higher Premiums in Some Areas: Premiums can be higher in certain regions, which might deter some customers from choosing AmFam UBI.
#10 – Allstate: Widest UBI Availability
Pros
- National Presence: Allstate Drivewise usage-based insurance is available in every state except Alaska and California.
- Comprehensive Coverage: Allstate offers a wide range of UBI options, including Drivewise and Milewise. Unlock details in our Allstate review.
- Personalized Service: Allstate’s local agents provide personalized service, helping customers navigate their usage-based car insurance options.
Cons
- Pricey for Some Drivers: Even with some of the best usage-based car insurance programs, Allstate’s premiums may be higher in some states.
- Mixed Claims Satisfaction: Allstate usage-based car insurance claims satisfaction can be mixed, with some customers reporting delays or issues.
Usage-Based Car Insurance Rates and Discounts
For safe drivers wondering how to get cheap car insurance, usage-based policies can provide substantial cost savings. UBI incentivizes safer driving by encouraging better habits, which can lead to discounts and flexible payment options.
Geico and USAA offer the most competitive rates for usage-based insurance, with Geico leading for both minimum coverage at $35/month and full coverage at $108/month.
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| Allstate | $53 | $135 |
| American Family | $45 | $121 |
| Farmers | $51 | $130 |
| Geico | $35 | $108 |
| Liberty Mutual | $50 | $140 |
| Nationwide | $43 | $115 |
| Progressive | $46 | $125 |
| State Farm | $40 | $120 |
| Travelers | $48 | $118 |
| USAA | $38 | $100 |
UBI is relatively new in the insurance industry and may not be available in all states. It tracks individual driving habits and sets rates based on how well and how far you drive. You may find that your rates are higher or lower than the ones above based on how and when you drive.
Car insurance discounts will also lower UBI costs. Start exploring more ways to save money on car insurance rates through academic success and bundling multiple policies below:
You can benefit from various discounts based on your driving habits and choices. Unlock savings with usage-based car insurance discounts from these top providers.
Factors That Influence Usage-Based Car Insurance Rates
In the world of usage-based auto insurance, every mile, every drive, and every choice matters. By understanding how your driving habits and environment shape your rates, you can get the cheapest car insurance possible.
Mileage, driving behavior, location, vehicle usage, and provider choice all play crucial roles in determining the cost of your UBI coverage:
- Mileage: Lower mileage typically results in lower premiums, as driving less reduces the risk of accidents and claims.
- Driving Behavior: Maintaining what is considered a clean driving record can result in reduced premiums, while risky driving may increase them.
- Location: Urban areas with high traffic congestion and accident rates generally lead to higher premiums compared to rural or suburban areas.
- Vehicle Usage: Regular commuting in heavy traffic is likely to result in higher premiums compared to occasional driving for leisure on less congested roads.
The insurance company you choose greatly impacts your UBI rates. Different insurers offer various rates and benefits for usage-based insurance, so compare multiple providers before you buy.
How Usage-Based Car Insurance Works
While UBI promises potential savings, it also brings privacy concerns, tech requirements, and uncertain savings outcomes. Understanding how it works will help you decide if UBI is the right fit for your insurance needs:
- Privacy Concerns: UBI requires tracking of driving habits, which may raise privacy issues for some individuals.
- Technology Requirements: Car insurance companies that use car tracking devices require drivers to install a telematics device or use a smartphone app to track habits.
- Variable Savings: While many drivers save money, those with frequent or risky driving behaviors may see little to no reduction in their premiums.
Weighing the benefits and challenges of usage-based insurance helps you make a choice that's right for you.
Maximize Savings with Usage-Based Car Insurance Companies
The best usage-based car insurance options include Progressive, Liberty Mutual, and Nationwide. Safe drivers can get monthly premiums for just $38.
However, it's important to compare car insurance quotes in order to choose the best insurance company for your needs.
Allstate, Nationwide, and Progressive UBI are available in the most states, but you might find a better provider near you. Enter your ZIP code below to start comparing free quotes from local companies today.
Frequently Asked Questions
What is usage-based car insurance?
Usage-based car insurance (UBI) is a type of coverage where your premiums are determined based on your driving habits. Factors such as mileage, driving behavior, and time of day are monitored using a telematics device or app. This approach allows for more personalized and potentially lower premiums if you drive safely and infrequently.
What factors influence usage-based car insurance rates?
Rates for usage-based car insurance are influenced by several factors, including your mileage, driving behavior, location, and vehicle usage. Each insurer may weigh these factors differently, so it's important to understand how each component affects your premium to make an informed decision.
How can I benefit from usage-based car insurance?
Usage-based car insurance can lower premiums based on your driving behavior. Completing a defensive driving course benefits higher-risk drivers, encouraging safer driving habits and reducing overall costs.
Which companies offer the best usage-based car insurance?
The best usage-based car insurance providers are Progressive, Liberty Mutual, and Nationwide. These companies offer competitive rates starting at $38 per month. Progressive is noted for its tailored pricing, Liberty Mutual for its discounts, and Nationwide for its comprehensive plans.
How do Progressive, Liberty Mutual, and Nationwide compare for usage-based car insurance?
Progressive is known for its tailored pricing, which adjusts based on your driving habits. Liberty Mutual offers significant discounts for safe driving. Nationwide provides comprehensive plans that cater to various driving behaviors and needs.
Why is usage-based pricing better?
Usage-based pricing (UBP) is a pricing model in which customers pay for the actual usage of a product or service instead of paying a flat rate. Tiered, usage-based pricing models are often more cost-effective for organizations, requiring minimum commitment and lowering the risk of overage charges.
What should I consider before choosing usage-based car insurance?
Before opting for usage-based car insurance, consider factors such as privacy implications, the technology required for monitoring your driving, and the potential variability in savings. Evaluate your driving record and what it tracks with the insurer’s pricing model to ensure that UBI is the right fit for you.
Are there any drawbacks to usage-based car insurance?
While usage-based car insurance offers personalized rates, it can also have drawbacks. These may include privacy concerns, as your driving data is monitored, and potential technology requirements, such as installing a telematics device. Additionally, savings are not guaranteed and can vary based on your driving patterns.
What is the lowest form of car insurance?
The minimum amount of car insurance you'll typically need is state-required liability coverage. This allows you to pay for some, if not all, injuries and damages you're liable for in an accident. Compare liability vs. full coverage car insurance to learn more.
Should I shop around for car insurance?
Shopping around at least once a year for car insurance can lower one of the biggest expenses of being a driver. Comparing quotes after a life event such as moving or adding a new driver to your policy can help you make sure you're still getting the best deal. Enter your ZIP code below to start shopping for auto insurance today.