How Much Does Telematics Lower Car Insurance?

We all want to be able to save on our car insurance, and one seemingly great way of doing that is through telematics, but you may be wondering if they actually do lower costs, and if so, by how much?

While it is true that telematics can lower your car insurance, savings are not guaranteed. Maryland’s insurance regulator found that of 263,703 telematics policies reviewed, only 31% actually resulted in a lower price. The same research also showed that 24% of policies actually increased, and 45% stayed the same.

And it’s not just Maryland that’s saying this; Progressive even backs it up, saying that about 2 in 10 Snapshot drivers actually see their rate increase. So, how much can you really save on your car insurance with telematics? What driving data does your insurance company collect? And could this data actually end up costing you more?

Do Most Drivers Save Money With Telematics?

One of the clearest pictures that can help in understanding what actually happens when drivers enroll is painted by the Maryland Telematics Survey report from July of 2025. The report reviewed 2,296,713 in-force policies from 18 different insurance providers, 16 of which had telematics programs, together making up 80.9% of the auto insurance market in 2023. Of those policies, 263,703 were enrolled in a telematics program.

The findings were as follows:

• Premium decrease: 31.16%

• Premium increase: 23.6%

• No change: About 45%

The regulator thus concluded that there was “roughly only a 31.16% chance” that a policyholder would see a decrease in their premium, meaning that enrollment is closer to a coin flip weighted towards nothing happening than it is to a guaranteed 30% - 40% discount.

This can actually help to explain why telematics savings can be so tricky to understand clearly. Progressive is one of the very few major insurers that publish their average savings, stating policyholders can save an average of $164 at sign-up, and $328 at program completion. Other car insurance providers, such as State Farm, Nationwide, Travelers, Liberty Mutual, USAA, American Family, and Root, all publish only their maximum discounts instead. They don’t disclose averages or discuss how difficult it is to obtain the maximum figure stated.

Independent research points in the same direction. In a 2024 Consumer Reports survey of 40,566 policyholders, the median annual savings among all telematics users was just $120, and only 14% of the policyholders surveyed had used telematics with their current insurer at all.

It's the distance between the advertised figure and the measured one that matters. Carrier maximums are ceilings: reaching Nationwide's 40% takes near-perfect driving across the whole monitoring period. Against that sits a $120 median and Maryland's finding that about seven in ten enrolled drivers saw no decrease at all. So the more useful question before enrolling isn't what the maximum is — it's what your odds of getting any discount are.

Root specifically says that “the better you drive, the more you could save”. Travelers warns that individual savings vary, and that not every policy will see a saving. While they are relatively transparent about what their figures mean, they keep just enough obscured that it is difficult to deduce what their customers actually save on average.

Despite this uncertainty, though, telematics enrollment is growing. Between 2021 and 2023, Maryland enrollment increased by a huge 45.5%, reaching 13.23% of in-force policies. The national picture points the same way: a LendingTree survey of 2,000 drivers in April 2026 put enrollment at 26%, against the 14% Consumer Reports found two years earlier. Two-thirds said they'd share driving data to lower their premium — though the outcome they worried about most was the opposite one: a rate increase or a smaller discount.

Telematics Discounts by Insurance Company

Headline discounts advertised by insurance providers are never the whole story. Some programs can increase your premium, and others can guarantee that your rate won’t rise because of your telematics score. Here are some of the details published by different insurers:

These are figures published by the insurance companies themselves, not estimates based on what customers actually received. Before signing up for telematics with any provider, you should note that maximum discounts are ceilings and are not typically what people save. Out of all of the providers discussed above, Progressive is the only carrier that publishes what participants typically save. Program terms were retrieved from each carrier’s own pages on September 24, 2026.

You may also see different numbers on other comparison sites, and it helps to know why. GEICO DriveEasy is the clearest case: some list it at up to 25%, others at up to 15%, while GEICO's own DriveEasy page publishes no maximum at all. Even when the 25% ceiling was advertised, the Consumer Federation of America found, as reported by Consumer Reports, that a more typical DriveEasy discount was about 10%. Third-party averages can also be older than they look: Policygenius puts average savings across five top insurers at 20%, from a study published in 2022.

How Is Your Telematics Discount Calculated?

Most programs pay in two stages, and the number they advertise is the second one. The first is a discount for simply enrolling: Liberty Mutual's RightTrack gives 15% if every driver on the policy takes part and 10% if only some do, American Family gives a flat 15%, and USAA offers up to 10% for new policyholders. Your actual rate is then set after a monitoring period — Travelers scores you over 90 days, while other programs track continuously. It's a useful split to know, because the two halves behave differently: the sign-up discount is close to guaranteed, and it's the only part you can count on before you've driven a mile.

Which Telematics Programs Can Raise Your Rate?

A discount isn’t necessarily a one-way deal. Several major insurers explicitly say that risky driving can lead to an increase in your premium, but the rules for this vary state to state. This means that whether or not your policy rate could increase due to dangerous driving is not only dependent on which car insurance company your policy is with, but also on where you live. Here is what some insurers say about policy increases:

• Progressive: “Your rate may increase with high-risk driving. But, only about 2 out of 10 drivers actually get an increase”

• Farmers: “Riskier driving behaviors, however, could result in a higher renewal premium rather than a discount.”

• Travelers: “Riskier driving habits may result in a higher premium.” But Travelers also states that “in DC, MT, NC, and VA, riskier driving habits will not result in a higher premium.”

• Allstate: “While your rate could increase with high-risk driving, most drivers will save with Drivewise.” Allstate's Drivewise page also notes that this doesn't apply in New York.

• GEICO: “Riskier drivers may see a higher rate depending on the state they live in.”

• American Family: “Most drivers save money by participating in DriveMyWay, though higher-risk drivers may see their rates increase”

Aside from these companies, there’s one trap you can fall into specifically with State Farm if you are not aware of the way their policy works. It is slightly different from many other providers. State Farm says that if you receive a discount for estimated annual mileage below 7,500 miles, but drive more than this, then your premium may increase at future renewals. While this is not a danger if you barely use your vehicle, if your commute changes or you have other obligations that may lead to an increase in your mileage, this can truly backfire unless you’re aware of it and able to make adjustments to your policy in advance of this increase.

Overall though, the rule is relatively simple. Whether telematics can raise your premium depends both on your insurance provider and the regulations of the state you reside in. Surcharge authority is filed state by state, so a blanket carrier-level answer will always be wrong somewhere.

If you live in Maryland, it’s good to be aware that you may have an extra safeguard, courtesy of your state’s regulations. In the old line state specifically, insurers must give 45 days’ written notice of a telematics-driven increase, identify the percentage attributable to the program and the driving behaviors involved, and note if insufficient data or dropping out caused it. Regulations are also put in place to prevent insurance companies from using vague wording such as “may have included” in their policy increase documentation. A 2026 bill, SB 351, would have gone further by adding a formal way to appeal disputed driving data and barring insurers from using telematics data to cancel or refuse to renew policies. It passed the Senate 30–13 in March 2026 but died in the House Judiciary Committee without a vote, so the notice rules above remain the main protection.

Which Telematics Programs Can't Raise Your Rate?

Nationwide’s SmartRide is the clearest example of a telematics program that cannot raise your rate. Nationwide describes it as a discount program: “SmartRide measures driving behavior to reward you with a discount, not raise your rates.”

There is one caveat, though: in Virginia and Washington, Nationwide says your discount may decrease at renewal if your driving behavior changes. While this is not a surcharge, it can mean a higher bill if you were to lose part of the discount.

If a potential rate increase is your main concern, though, Nationwide’s SmartRide is the clearest choice amongst all of the major programs we have discussed. Not only will they not be able to increase your rates through this telematics program, but they also collect less driving data than many competing programs, making it one of the more privacy-friendly options. It also has the strongest satisfaction record among usage-based insurers: Nationwide ranked highest in the usage-based insurance segment of J.D. Power's 2026 U.S. Auto Insurance Study with a score of 711, its third consecutive year at the top.

What Data Do Telematics Apps Track?

Telematics programs price your insurance using data about how you drive, and the data they collect can be quite extensive. Maryland’s regulator found 47 distinct data categories, including location, speed, braking, phone use, seatbelt use, lane assistance, and forward-collision warnings. They also found that only five of sixteen insurance companies actually collected the data themselves, with the other eleven outsourcing to other companies for data collection.

Another important aspect to note about the data collection side of telematics is when it comes to claims. GEICO specifically says, “We may also utilize driving data to help speed up the claims process for customers,” and they’re not the only one that does this. This means that data collected for a discount can appear in documentation relevant to a claim.

Your insurer's app isn't the only possible source of driving data, either. In January 2026, the FTC finalized an order against General Motors and OnStar over allegations that they collected drivers' precise location and driving behavior data and sold it to third parties, including consumer reporting agencies, without consent. The order bans GM from sharing that data with consumer reporting agencies for five years and requires it to get drivers' express consent before collecting connected-vehicle data. If your car has connected services, it's worth checking its data-sharing settings as well as your insurance app's.

That said, different programs differ dramatically. As we just mentioned, Nationwide’s SmartRide is one of the most privacy-friendly programs out there. They track neither phone use nor location. Similarly, GEICO says they do not capture or report speeding violations, offering more meaningful choices to drivers cautious about their privacy.

Does Drive Safe & Save Track Your Location?

In short, yes. State Farm specifically addresses this in their own FAQ, under the heading ‘Why is my location used?’ They state that location “is used in conjunction with the phone’s accelerometer and other sensors to measure things like speed, turning, braking, acceleration, and miles driven,” and is “also used to provide you useful maps of your trips.” The app requires precise location to be enabled, with location services set to “always.”

Other major programs, though, handle location differently:

Additionally, State Farm states, “We don’t sell your information,” but adds that in limited situations, they may share information with third parties.

When it comes to location tracking as part of your telematics, you should be sure to double-check the individual program’s data policy rather than assuming that every telematics app tracks the same things.

Is Telematics Car Insurance Worth It?

Telematics is worth considering in some conditions, but it definitely won’t suit everyone. For example, it may suit you if you:

• Drive relatively few miles

• Rarely drive at night

• Don’t brake hard

• Can choose a program that cannot raise your premium

• Have stable mileage

• Have stable driving habits

It’s a good idea to take some time to consider your options and think twice before enrolling if you:

• Have a long commute

• Regularly drive at night

• Expect your mileage to increase soon

Before you enroll in any program, you should be sure to check your state first. Both availability and surcharge authority vary by state.

It's also worth knowing that not every usage-based program works the same way. State Farm describes two main types: pay-how-you-drive programs, which reward consistent safe driving habits, and pay-as-you-drive programs, which focus on mileage and tend to benefit low-mileage drivers. Allstate also treats pay-per-mile car insurance as a separate option from its safe-driving rewards, so if the main thing working in your favor is that you don't drive much, it can be worth quoting a mileage-based policy alongside a behavior-based one.

Most importantly, a discount percentage is not a price. A 30% discount may at first seem like a great benefit, but if this is on an expensive policy, it may still end up costing you more than a cheaper policy with no telematics. Be sure to compare the final premiums across insurers, not just the advertised discounts.

If you live in California, though, there is something to be aware of that affects you specifically. Proposition 103 requires auto insurers to give primary weight to safe driving record, annual mileage, and driving experience. This regulation explains why some policy providers' programs, such as Snapshot, Drive Safe & Save, and DriveEasy, are all unavailable there, and why Farmers’ Signal doesn’t offer their discount. There is a bill that could change this. Assembly Bill 311 would allow insurers to use telematics to set rates for drivers who opt in, but as of August 13, 2026, it was held under submission in committee, so the current rules still apply.

While telematics can save you money, the biggest advertised discount isn’t necessarily helpful in finding the cheapest policy for your driver profile. Before you enroll in any telematics program, it’s worth comparing what you’d pay across different insurers to ensure you’re getting the deal that suits you best.

Here at SaveMax Auto, we can help with that. Get in touch today to compare your options and find the car insurance coverage that gives you the best price for what you need - with or without telematics!

FAQs About Telematics and Usage-Based Insurance