These 2 Companies Have the Best Safe Driver Car Insurance Deals

Even though inflation is slowing down, car insurance costs just seem to keep going up. Recent Insurify survey data found that drivers could see a total increase in car insurance premiums of 22% for 2024. This is especially painful after last year’s 24% hike in car insurance premiums.

Some reasons for higher car insurance costs are beyond anyone’s individual control. Insurify’s report found that much of the recent increase in car insurance costs has been caused by rising costs for vehicle repairs and maintenance (which have gone up 38% in the past five years) and climate disasters like extreme storms and wildfires that damage and destroy cars.

But drivers have choices for how to manage their auto insurance. There is a special kind of car insurance called “telematics” (usage-based insurance) that rewards safe driving with discounts.

Let’s take a closer look at how drivers can take back control of their car insurance premiums — and which auto insurance companies have the best deals.

Why drivers should try telematics car insurance for safe driver discounts

One thing that’s so frustrating about the high cost of car insurance is that it seems to be outside of anyone’s control. No one can control the weather, and drivers can’t control how other people drive — even for safe drivers who never speed or get into car crashes, it seems like car insurance just keeps getting more expensive.

Telematics car insurance helps drivers regain control and get rewarded for safe driving behaviors. All it takes is signing up for a special insurance program and agreeing to share some driving data with the car insurance company. Many telematics car insurance programs work via mobile app or a special device attached to the driver’s car (with the driver’s consent).

People already share all kinds of data with insurance companies and technology apps everyday. Drivers who are comfortable sharing a bit more information with their auto insurers can save money on car insurance.

Here are a few types of data that telematics car insurance programs might ask to see:

• Miles driven
• Driving speed
• Fast braking and acceleration
• Nighttime driving
• Distracted driving
• Amount of time spent idling/sitting in traffic

Safer driver behavior can help drivers qualify for bigger discounts. Now let’s look at the two top-rated car insurance companies for safe driver discounts.

1. Nationwide SmartRide®

Nationwide SmartRide® offers discounts of up to 40% for drivers who qualify based on safe driving behavior, including a 10% discount just for signing up.

Nationwide measures four types of driving data with its telematics program:

• Miles driven: Insurance customers who drive fewer miles tend to have lower risk of accidents
• Hard braking and acceleration: Drivers who stomp on the gas (or brakes) might be more likely to crash
• Idle time: The more time a driver spends sitting in congested traffic, the greater chance of a crash
• Nighttime driving: Drivers who are on the road between midnight and 5 a.m. are at higher risk for crashes

Driving data is collected via the Nationwide SmartRide® mobile app. And unlike many insurance companies, this app gets excellent reviews for iOS (4.6 stars) and Android (4.3 stars).

(Note:This program’s rules and criteria may be different for drivers in California and North Carolina.)

2. State Farm Drive Safe and Save®

State Farm ranks highly among the best car insurance companies, and its State Farm Drive Save and Save® program is one of the best. It offers discounts of up to 30%, and an immediate discount just for signing up (setup is required).

State Farm’s safe driver discount program measures a few types of driving data:

• Acceleration: Speeding up too fast can cause risky driving situations and increase the chance of collisions.
• Braking: Hard braking can be a sign of unsafe following distance, which makes drivers higher risk for crashes.
• Cornering: Quick, sharp turns might mean that drivers are not being careful enough at intersections.
• Distracted driving: State Farm’s app can detect when drivers’ phone screens are on.
• Speed: The app shows when drivers have exceeded the speed limit by 8 miles per hour or more.

State Farm has developed a special app for State Farm Drive Safe and Save®. This app gets great reviews from customers: 4.6 stars for iOS, and 4.1 stars for Android, based on hundreds of thousands of reviews.

(Note: Discounts may vary based on the driver’s state. Discounts can be higher than 30%, but are capped at 30% in New York. This program is not available in California, Massachusetts, or Rhode Island. Discounts may not be available in North Carolina.)

Bottom line

Compared to most car insurance companies, State Farm and Nationwide offer bigger discounts for safe drivers and have better-rated mobile apps for telematics car insurance that rewards safe drivers. Any drivers who are thinking about saving money on car insurance by sharing their driving data may want to consider these two companies first.

Other car insurance companies don’t promise such big discounts, and some might even raise premiums based on high-risk data. The State Farm and Nationwide telematics mobile apps get good reviews, unlike other companies where many drivers complain about inaccurate data tracking and app errors.