Can I Lower My Car Insurance Rates With Safe Driving Apps?

What Are Safe Driving Apps?

Safe driving apps use the sensors in your mobile phone—GPS, accelerometers and magnetometers—to monitor how you drive. They collect real-time data and analyze behaviors that are often associated with higher accident risk, including:

• Hard braking
• Rapid acceleration
• Speeding
• Late night driving
• Sharp cornering
• Phone use while driving

Some safe driving apps are designed strictly for personal driving improvement or parental monitoring. These offer driving feedback without affecting your insurance rates. Others are provided directly by insurance companies and are tied to your auto insurance policy. Apps linked to an insurer usually measure your driving over several months then apply a discount at renewal, if you qualify.

Learn more: How to Get Car Insurance

Will Safe Driving Apps Reduce Insurance Costs?

Safe driving apps connected to your insurance policy can potentially lower your premium through participation discounts or driving-based savings. Many insurers offer an upfront discount simply for enrolling and households with multiple drivers may increase savings by enrolling all drivers. Savings vary depending on the insurer.

Using a general-purpose safe driving app—one that isn't connected to your insurer—won't directly affect your premium, but it can still benefit you. Safer driving habits may help you avoid traffic tickets and accidents that would otherwise raise your insurance costs.

Discounts aren't guaranteed, even with an insurer-provided app. If you drive frequently or show risky driving habits, you may not receive a discount. Some insurers may actually raise your rate because risky driving increases the odds of an accident.

You could lose previously applied discounts if your actual driving habits disqualify you for the discount. For instance, if you have a safe driving app that shows you exceeded the mileage limits for a low-mileage discount.

Learn more: Safe Driving Tips

Do Safe Driving Apps Protect Your Data?

Safe driving apps collect detailed data about how, when and where you drive. This may include your location history, trip duration, speed, braking patterns and phone usage while driving. Depending on the app's permissions, it may continue tracking in the background even when you're not driving or using the app.

Data collected through the app may be shared with third-party server providers for driving analysis or to improve app performance. Insurers may allow third parties to collect additional data for advertising or marketing purposes. Privacy protection varies by insurer and state.

Like most apps and digital services, your data is stored electronically, which means it could be vulnerable in a data breach. Before using a safe driving app, review the insurer's privacy policy and app permissions to understand what data is collected, how long it's retained and whether you can opt out or delete your information later.

Learn more: What to Do if Your Information Is Found on the Dark Web

Other Ways to Save on Car Insurance

If your insurer doesn't offer a safe driving app or you prefer not to share your driving data, there are other ways to potentially save on car insurance.

• Bundle your policies. If you have multiple insurance policies—home, renters or life insurance—you may save by having all your policies under one insurer.
• Adjust your coverage. If your car is paid off or has depreciated, you may be able to save money by lowering or dropping your collision and comprehensive coverage.
• Raise your deductible. Increasing the amount you pay out of pocket before your coverage kicks in can lower your premium. Make sure your insurance deductible is still low enough that you can afford to pay it if you need to file a claim.
• Shop for a new policy. Look for savings by comparing quotes from other companies. Using an online comparison tool can streamline the process, helping you compare quotes from multiple insurers at once.
• Ask for discounts. Insurers often offer discounts on your premiums, including for insuring multiple cars, paying your annual premium in full, completing a defensive driving course or belonging to certain organizations. Reach out to your insurer to find out which discounts you may qualify for.
• Improve your credit. In many states, insurers use a credit-based insurance score to price your policy. These scores are different from the scores lenders use but are calculated using many of the same factors. Improving your credit can raise your credit-based insurance score and help you qualify for lower premiums.

Learn more: Cheapest Car Insurance in the US

Frequently Asked Questions

Learn more: Average Cost of Car Insurance in the US

The Bottom Line

Safe driving apps offer a way for responsible drivers to potentially lower their insurance costs. The trade-off is sharing your driving data with your insurer and their business partners.

You can look for potential savings with Experian's free auto insurance comparison feature. You can view quotes from multiple insurers and choose one with the best balance between coverage and price.