When it comes to car insurance, some companies employ a data-tracking technology called telematics that could lead to big savings on your premium if you opt in.

Some insurers use telematics to monitor driving behavior — and other metrics — in order to calculate your driving score. You could see your monthly premium shrink if you drive safely according to your insurance company.

• What is telematics in car insurance?
• Usage-based insurance and telematics
• Pros and cons of telematics in car insurance
• How does telematics work in car insurance?
• Car insurance providers that use car insurance
• FAQs about telematics in car insurance

What is telematics in car insurance?

In car insurance, telematics is a way of measuring, tracking and recording data involving your driving behavior. Telematics is not a specific type of insurance coverage, but insurance companies may be interested in the data it collects.

Telematics is a device or program that helps monitor driving behavior. Some examples of what it monitors include the number of miles you drive, what time of day you drive, where you drive, and how fast you accelerate, brake or take corners.

Usage-based insurance and telematics

Some car insurance companies use the data collected via telematics to provide usage-based insurance, or UBI, a type of insurance program where the premium you pay is based on your driving behavior or mileage.

Traditionally, insurers use things like your age, driving history, vehicle, credit and location to calculate the cost of your premium.

But with a UBI program, an insurer also considers your mileage and other driving habits in calculating your insurance cost. That means you could lower your bill if you’re a safe driver or don’t drive very often.

Many insurers offer discounts simply for signing up for their UBI programs. Once you’ve completed the trial portion, you could save as much as 10% or more on your premium.

Pros and cons of telematics in car insurance

Pros of telematics in car insurance

Using telematics in car insurance allows insurance companies to calculate risk more accurately. This means safe drivers or those who don’t drive very much don’t overpay for a policy designed using a one-size-fits-all approach.

Plus, according to studies by the National Association of Insurance Commissioners, UBI programs may incentivize drivers to drive more safely or to drive fewer miles, reducing accidents and traffic congestion.

Another benefit of using a telematics program is crash assistance — when your trips are being monitored, the device or app you’re using can detect if you’ve been in an accident and send help your way.

Cons of telematics in car insurance

Some customers may be concerned about their privacy when it comes to using telematics devices. In many cases, telematics devices track and record your location along with other information about your daily life — like when you drive your car to certain places like work or school. 

Because of those privacy concerns, the availability and scope of telematics vary by state, and different insurers have different limitations on the data they collect.

You’ll also want to ensure you’re the kind of driver who could benefit from a usage-based insurance program. For example, if you log a lot of miles on your commute to work, you may be better off with a more traditional insurance model.

How does telematics work in car insurance?

Here are some ways insurance companies use telematics to track your driving habits. Not all of these options are available from all companies or in every state.

Plug-in devices

Some companies will mail you a small device that plugs into your car, usually on the steering column. 

The device will log all your car’s trips and beep when you make what the company considers a hard brake. In general, the less your device beeps, the greater your potential discount could be. Depending on the program, you may keep the device installed in your car or return it after a certain period.

The insurance company will give you a report about your driving — and what that means for your overall bill.

Mobile app monitoring

Mobile apps are another popular method of recording drivers’ data. With this approach, drivers download an application that uses Wi-Fi and their location data to monitor their driving habits.

These programs may also record whether you use your phone while driving, which can count against you. 

Many large insurers offer mobile app monitoring for their UBI programs.

Bluetooth monitoring

Some insurers use a combination of a mobile app and a Bluetooth beacon to monitor your trips. To use this type of program, you’ll need to keep your Bluetooth and location services active on your phone and install the small Bluetooth beacon device into your car.

Manufacturer built-in

Some newer cars may come with telematics functionality built in. For example, Tesla uses built-in systems to monitor driving behavior, which can determine your premium via Tesla insurance. It can also provide data to the company about when your car needs service.

Car insurance companies that use telematics

Today, many major car insurance companies use telematics in some way, though their methods, potential discounts and availability may vary. Here’s a look at some other car insurance companies that use telematics.

Liberty Mutual

Liberty Mutual’s RightTrack usage-based insurance program offers a robust discount opportunity with an instant 10% discount on enrollment and up to 30% off your auto policy for safe driving.

Customers can participate in the RightTrack program via a mobile app or plug-in, which will track their driving for 90 days. Depending on your state, your discount will be applied when you complete the program or renew your policy.

Metromile

Metromile, which is owned by insurance company Lemonade, has a model that focuses on pay-per-mile auto insurance. Its website claims that customers save an average of 47% on their premiums compared to their previous policy.

With Metromile’s RideAlong telematics program, customers download the app and apply for the RideAlong program. Then, they drive like they normally would for 17 days, which gives Metromile enough information to calculate an accurate rate based on how many miles you drive.

Root

Root bases its rates primarily on how safely its customers drive, considering things like gentle turning, smooth braking, driving during safe hours and not using your phone while you’re behind the wheel. 

Its mobile app uses the sensors in your smartphone to track your driving and allows customers to manage their coverage and make claims.

FAQs about telematics in car insurance

What’s next?

If you are a safe driver or don’t drive your car very far or very often, it might be worth looking into a usage-based insurance program that uses telematics. Many major insurers offer these programs, so if you’re happy with your current coverage, you may want to see if your insurer has a program you can join.

If you’re shopping around, be sure to learn about what kind of discounts you may be eligible for by signing up for and participating in a UBI program.

Insurance companies use certain information to calculate your insurance premium, including your age, car, ZIP code, driving habits, claims history and the distance you drive in a year.

Many insurers also use a credit-based insurance score, which looks at your payment history, credit history and overall debt, to determine the risk of an insurance loss. While it’s not quite the same thing, bad credit can often correlate to a lower credit-based insurance score, which may mean you’ll be paying more for your car insurance.

If you have bad credit, there are a few things you can look for when comparing car insurance companies. Read on to learn more about some of the companies that offer the best car insurance for bad credit.

• How does credit affect car insurance?
• Why do car insurance companies use credit history?
• Best for high-risk drivers: State Farm
• Best usage-based car insurance: Nationwide
• Best for discounts: Geico 
• Best for no credit check: Cure
• FAQs about car insurance for bad credit
• How we picked these insurers

How does credit affect car insurance?

Much like your credit affects your ability to apply for a credit card or get a mortgage, your credit can affect how much you pay for car insurance. The laws vary by state, but in many cases, insurance companies can use a metric called a credit-based insurance score to calculate the price of your insurance premium. Generally, drivers with good credit will pay less for car insurance than drivers with poor credit.

Why do car insurance companies use credit history?

The riskier a company determines a customer to be, the more it will likely charge them for their services. Studies from the Federal Trade Commission have indicated that drivers with bad credit are more likely to file car insurance claims than those with good credit.

Even though your credit score can affect your insurance premium, your credit-based insurance score isn’t quite the same as your credit score. Unlike a regular credit score, which looks at a broad range of factors, a credit-based insurance score looks at a more limited set of data from your credit history. Car insurance companies using this metric are likely examining your credit utilization, credit history, credit mix and delinquencies to determine how likely you are to have an insurance loss.

Best for high-risk drivers: State Farm

Here’s why: State Farm car insurance is available nationwide and offers several opportunities to lower your rate based on your driving. Additionally, State Farm offers some discounts that can help offset the increased cost of insurance for bad credit.

• SR-22 assistance — If your license has been suspended, you may be required to submit proof of insurance (also known as an SR-22 certificate), which your State Farm agent may be able to help you with.
• Coverage — State Farm provides standard coverage options (collision, comprehensive and liability), plus optional coverage like rental reimbursement, rideshare coverage and emergency roadside service.
• Discounts — State Farm offers several discounts for drivers, including bundling, multivehicle and anti-theft device discounts.
• Safe-driver savings — Other ways to save money on your premium include the Drive Safe & Save™ and Steer Clear® programs. Discounts for taking a defensive driving course or going three years without a violation or accident are also available.

Best for usage-based insurance options: Nationwide

Here’s why: Most major insurance companies will run a credit check on their customers. But there are other ways to lower the cost of your premium, even if your credit isn’t great.

If you’re a safe driver or don’t drive often, you may benefit from a company offering pay-per-mile programs or usage-based insurance, or UBI. These programs usually use telematics to track your driving behavior and then use that data to calculate your rates.

• Availability — Nationwide isn’t available in every state, so you’ll need to check if it’s available where you live before committing to this insurer.
• Usage-based insurance option — Drivers receive a 10% participation discount for enrolling in Nationwide’s SmartRide program and can earn up to a 40% discount based on their safe driving. That’s a higher potential UBI discount than those offered by other major insurers.
• Discounts — Other discount opportunities include multipolicy, good-student, accident-free and defensive-driving discounts.

Best for discounts: Geico

Here’s why: Geico offers an impressive range of discount options. While drivers with lower credit scores may pay slightly higher premiums, they could make up the difference by taking advantage of some of Geico’s other opportunities for savings.

• Discount categories — Geico offers car insurance discounts in several categories, including vehicle equipment, driver history and habits, driver’s education, driver affiliation and customer loyalty. Several of its possible discounts could save drivers between 20% and 25% on their premiums.
• Versatile app — Tech-savvy customers may also appreciate Geico’s robust mobile app, which allows users to manage their policies, request roadside assistance, get a photo estimate and more.
• Discount availability — Take note: Not all discounts and programs are available in all states.

Best for no credit check: Cure

Here’s why: It’s rare that you’ll find a car insurance company that doesn’t check your credit at all. Cure, which stands for Citizens United Reciprocal Exchange, is known for its stance against using factors like education, occupation and credit score to determine car insurance rates.

• Availability — At this time, Cure offers car insurance in just a few select states.
• Additional services — Cure offers 24/7 roadside assistance. Services include fuel delivery, battery jump-start, locksmith service, tire change and towing.

FAQs about car insurance for bad credit

How we picked these insurers

We used information from each insurance company’s website to select the best insurers for drivers with bad credit. In general, we looked at insurance companies with the greatest availability, most unique driver programs and the most robust discount options. We also analyzed what credit information the companies require to assess a policy.

Shopping for car insurance? Here are the 10 largest car insurance companies in the U.S.

Bigger auto insurance companies often offer a wide range of standard coverages, unique add-ons, and ways to save on your premium. Plus, unlike regional insurers, many of them cover drivers across the country.

• State Farm
• Progressive
• Geico
• Allstate
• USAA
• Liberty Mutual
• Farmers
• Travelers
• American Family
• Nationwide

1. State Farm

As the largest auto insurer in the U.S., State Farm has thousands of insurance agents around the country. State Farm also offers homeowners, renters, property, health, disability, personal liability and life insurance options.

Customers can save on their premiums by taking advantage of one of State Farm’s two discount programs. Drive Safe & Save is a usage-based insurance program that uses a smartphone app to track safe driving, and Steer Clear is a safe-driving program for drivers under age 25.

2. Progressive

Progressive’s insurance products — which include auto, renters, homeowners, condo and other vehicle insurance products — are also available nationwide, though coverage options may vary by state.

Cost-conscious customers may benefit from Progressive’s “Name Your Price” tool, which can help you find coverage options at a premium that fits your budget.

3. Geico

Geico, a Berkshire Hathaway subsidiary, has provided insurance products since 1936. Today, the insurance company stands out for its wide range of potential discounts, including discounts for having a safe driving record, bundling multiple Geico policies, having certain safety or anti-theft equipment and being affiliated with certain groups like the military, federal employees and people in the military who are part of emergency deployment.

4. Allstate

Founded in 1931, Illinois-based Allstate offers a wide range of insurance products across the country. Allstate’s Drivewise program is available in some states and allows drivers to earn rewards for tracking their safe driving habits through a mobile app.

Allstate is one of the few major insurers offering a pay-per-mile insurance program, Milewise, which charges drivers a daily base rate plus a per-mile rate for every mile they drive.

5. USAA

Coverage through USAA is only available to USAA members, including active-duty military members and retired and separated veterans with an honorable discharge from the U.S. military.

Membership is also available to eligible family members — including children, spouses, widows, widowers and un-remarried former spouses of USAA members.

6. Liberty Mutual

Boston-based Liberty Mutual offers customers a few unique optional coverage and savings opportunities. For example, its Better Car Replacement program reimburses drivers for a car that’s one model year newer and has 15,000 fewer miles on it than their previous car if it’s totaled in an accident.

With the Liberty Mutual Deductible Fund, drivers in certain states may be able to lower their deductible by $100 every year.

7. Farmers

Farmers works with more than 48,000 independent agents and offers a range of insurance coverage options in most states. In addition to collision, liability and comprehensive insurance, Farmers offers less common coverages, including loss of use, guaranteed value, customized equipment coverage, spare parts coverage, original equipment manufacturer coverage, a glass deductible buyback and new car replacement.

8. Travelers

Travelers has been selling insurance for more than 165 years. It even claims that it issued the first accident and auto insurance policies. Today, Travelers sells insurance through a network of about 13,500 independent agents and brokers in the U.S., Canada and the United Kingdom.

Some drivers may be able to take advantage of Travelers’ generous decreasing deductible program, which gives drivers a credit toward their deductible for keeping a clean driving record. The deductible credit is applied every six months, which is more frequent than many similar programs.

9. American Family

American Family, sometimes called AmFam, is only available in some states. This insurance company offers a wide range of mostly standard coverage and discount options for drivers. AmFam ranked higher than the industry average for customer claims satisfaction according to J.D. Power’s 2023 Auto Claims Satisfaction Study.

10. Nationwide

Rounding out the list of the largest auto insurers is Nationwide. Nationwide insurance is available in most U.S. states and Washington, D.C.

Nationwide offers a range of vehicle coverage options, including auto, classic car, boat, snowmobile, ATV, motorcycle, RV, personal watercraft, scooter and golf cart. Plus, it offers additional coverages like business, farm, life, pet, motorcycle, boat and homeowners insurance.

What’s next?

Before buying car insurance, be sure to shop around and compare quotes from several different insurance companies. You should also check on any discounts you may be eligible for and determine whether you have any specific coverage needs that may be better met by one company over another.

The largest car insurance companies are a great place to start for standard options and wide availability. But depending on your unique coverage and budget needs, a bigger insurance company may not always be the best fit for you.

You don’t want to wait until you’re in an accident to find out what your insurance covers.

Most drivers are required by state law to carry basic auto insurance, which usually includes bodily injury and property damage liability coverage. But many drivers opt to carry more than the bare minimum state-mandated insurance. Read on to find out what kinds of coverage insurance companies offer and how to determine how much insurance you need.

• What is car insurance?
• How does car insurance work?
• What do car insurance coverages protect?
• Additional car insurance options
• What does car insurance not cover?
• How much car insurance do you need?

What is car insurance?

Car insurance helps protect you against financial loss if your car is lost or damaged. It can also help cover your financial liability if you injure someone or damage their car in an accident. When you buy car insurance, you enter into an agreement with your insurance company — you pay a premium, and the insurance company agrees to pay your losses according to the terms of your policy.

Most states require drivers to carry at least some car insurance, but the amount and type of coverage varies by state.

How does car insurance work?

You can decide on the type and amount of car insurance coverage you want and you pay upfront for that coverage in the form of a premium. If your car is stolen or damaged in an accident, you’ll file an insurance claim, and your insurance company will cover the cost to replace or repair it — as outlined in your policy.

Typically, the more comprehensive your coverage is, the higher your premium. When choosing your coverage options, consider what’s required by law in your state and your other specific needs.

What do car insurance coverages protect?

Here are some of the standard coverages you may see on your car insurance policy.

Should I get full-coverage car insurance?

Full coverage insurance may vary by insurance company but typically includes liability, collision and comprehensive coverage. This is usually more expensive than more basic insurance policies, but it offers more coverage in case you’re in an accident or something else happens to your car.

Additional car insurance options

Insurance companies also offer optional, or add-on, coverage options. These coverages may raise your premium, but they could be useful depending on your situation.

What does car insurance not cover?

What your insurance policy covers depends on several factors, including your coverage selections, the insurer you use and laws in your state. But there are some things that most standard insurance policies don’t cover, including the following:

• Theft of belongings inside your car
• Intentional damage or damage done through illegal activity
• Routine maintenance and wear and tear
• Custom parts

How much car insurance do you need?

There’s no one-size-fits-all approach to car insurance. When deciding on how much coverage to buy, first learn what your state requires, then think about what coverage options best fit your specific needs.

Your finances will probably also play a role in the coverage you choose. While a lower premium may be appealing upfront, make sure you can cover the out-of-pocket costs that come with a higher deductible or a lack of coverage.

What’s next?

Shopping for car insurance can be intimidating. Be sure to compare quotes from several different insurance providers and check out what kinds of discounts you may qualify for. If you don’t drive often, you may benefit from looking at some nontraditional insurance options that charge you based on how much you drive or your driving behavior.

Editors’ take: Hugo auto insurance could be a good option if you drive sporadically and don’t need full coverage. With Hugo’s on-demand car insurance model, you can activate your insurance when you need it and turn it off when you don’t. But Hugo isn’t available everywhere. If you’re interested in robust discount opportunities and extensive coverage options, you may be better off getting full coverage from a more seasoned insurance company.

Hugo auto insurance at a glance

Pros

• Pay-as-you-go insurance model
• No down payments
• “Instant” proof of insurance

Cons

• Not available everywhere
• Coverage options are limited

What you need to know about Hugo auto insurance

A newcomer to the car insurance scene, Hugo stands out for its innovative and flexible “micropayment” model. The company claims to offer on-demand insurance that drivers can turn on while driving and turn off when they’re not. According to the company, customers don’t have to pay hidden fees or down payments — though they do have to start with at least three days’ worth of coverage — and can get proof of insurance in under six minutes.

Pay-as-you-go insurance model

One of the things that makes Hugo unique is its pay-as-you-go insurance model. Customers deposit money into their accounts which is then used to cover the cost of their “as needed” car insurance. They can turn on their coverage for days, weeks or months at a time, pay a flat per-day rate while their insurance is “on,” and turn off their car insurance so they aren’t paying on days they don’t drive.

Not available in every state

Hugo isn’t available in most states, so you’ll need to check on the insurer’s website to see if it’s offered where you live.

May be different to get customer service

Hugo doesn’t appear to have a mobile app, but customers can turn on or off their coverage via text message or the Hugo website. Customers can also manage their policies through their online accounts. But information on the Hugo website is sparse, and no agents or hotlines appear to be available for assistance.

Auto coverage offered by Hugo

Hugo’s coverage options also seem limited and may be best for drivers looking for state-minimum coverage on a car they don’t drive often. The company offers three policy options: Flex, Unlimited Basic and Unlimited Full.

None of Hugo’s coverage options currently includes towing or roadside assistance.

Flex Plan

The Flex option offers liability coverage that meets state requirements and might be best for drivers who don’t drive every day. It’s a pay-per-day liability policy that allows customers to buy three, seven, 14 or 30 days to begin. It allows you to turn off your policy for days you won’t be driving.

Basic Plan

Basic also offers liability coverage that meets state requirements and includes medical and accidental death coverage. Basic is geared toward drivers who drive more often and offers a six-month policy option.

Unlimited Full Plan

The Unlimited Full plan offers what Hugo calls full coverage — which includes collision, comprehensive and liability insurance — and is probably best suited for drivers who drive their car frequently. Unlimited Full coverage also includes medical coverage, accidental death coverage and rental car insurance.

Unlimited Full is the only Hugo policy that covers your vehicle and passengers and comes with the added perk of same-day claims pay. Like the Flex and Unlimited plans, Hugo advertises no upfront fees for Unlimited Full.

Auto insurance discounts offered by Hugo

Hugo doesn’t offer much information about potential car insurance discounts. Still, its focus on pay-as-you-go coverage could save drivers money if they don’t drive often or require full coverage. The company does claim to offer cash rewards for each coverage tier.

FAQs about Hugo auto insurance

Not sure if Hugo auto insurance is right for you? Consider these alternatives.

• Auto insurance from Root could be good for someone looking for an online experience and insurance rates based on their driving behavior.
• Metromile insurance may be ideal if you’re interested in paying for an insurance policy calculated based on your mileage.

There’s a lot that goes into choosing the right car insurance. You want to make sure you’re getting the appropriate amount of coverage and that your insurer offers services in a way that works best for you — whether that’s online, via a local agent or on a mobile app.

Car insurance can be pricey, which is why it’s also important to shop around for quotes and research any discounts you may be eligible for. Luckily, many insurance companies offer a range of discount options for drivers based on things like your driving record, customer loyalty, student or military status, and other factors.

• Best overall: Geico
• Best discounts for usage-based insurance: Nationwide
• Best discounts for bundling: Allstate
• Best discounts for military members: USAA
• Best discounts for drivers over 55: The Hartford for AARP
• Best discounts for students: State Farm

Best overall: Geico

Why Geico stands out above the rest: Geico takes the top overall spot because of its coverage options and wide range of potential discounts. While some insurers may offer more generous discounts for specific things like being a good student, driving safely or bundling policies, Geico customers will likely be able to get the coverage options they want and still qualify for several auto insurance discounts.

• Range of discount categories — Geico offers discount opportunities in categories including vehicle equipment, driver affiliation, customer loyalty, driving history and habits, and driver’s education.
• Standout discounts — Some of Geico’s best discounts include 23% each for airbags and anti-theft systems, 22% for being five years accident-free, 25% for military members during emergency deployment and 25% for multivehicle policies.
• “Prime Time” savings — In certain states, Geico also has a savings program for drivers over the age of 50 with no operators on their policy under age 25.
• Availability — Be sure to check your policy options, as not all discounts or coverages are available in every state.

Read reviews of Geico auto insurance.

Best discounts for usage-based insurance: Nationwide

Here’s why: Nationwide offers two options for usage-based insurance discounts: SmartRide and SmartMiles. SmartRide rewards drivers with a discount of up to 40% for practicing safe driving habits. SmartMiles is a pay-per-mile insurance program that offers drivers a flexible monthly rate based on how much they drive.

• Big discounts possible — The SmartRide program offers one of the most generous discount possibilities among traditional insurers who offer telematics-based programs, with a 10% enrollment discount — with a total discount of up to 40% based on how safely you drive. Plus, you can improve your discount at every renewal.
• Mileage-based tracking — Nationwide is somewhat unique in that it also offers a mileage-based program, which could benefit customers who drive less than the average.
• Insurance coverage — Nationwide offers all the standard full-coverage options, plus special coverages, including accident forgiveness, roadside assistance, vanishing deductible and total loss deductible waiver.

Read reviews of Nationwide auto insurance.

Best discounts for bundling: Allstate

Here’s why: Allstate could be a great choice for people looking for a package deal. Many insurers offer discounts for “bundling” multiple insurance products — or policies for several vehicles — under one roof. At up to 25%, Allstate offers one of the most generous multipolicy bundle discounts around.

• Bundling discounts — Allstate offers generous discounts for bundling different insurance products — like home and auto, renters and auto, or renters and motorcycle.
• Additional discounts — Other available discounts include new-car, smart student, safe driving, anti-lock brake and anti-theft device discounts. Allstate also offers discounts for setting up autopay, paying in full, going paperless and signing your policy early.

Read reviews of Allstate auto insurance.

Best discounts for military members: USAA

Here’s why: With services and discounts designed exclusively for military members and their families, USAA is a top pick for folks with military affiliations. To qualify for car insurance through USAA, you’ll have to have a USAA membership, which is open to U.S. military members and veterans, spouses and children of USAA members, and precommissioned officers.

• Storage discount — You can get a discount of up to 15% for storing your car in a garage on a military base.
• Other discounts — Additional discount opportunities include an automatic payment discount, a good student discount and a MyUSAA legacy discount.
• Available coverage — USAA offers liability, collision, comprehensive and uninsured/underinsured motorist coverage.
• Positive customer experiences — USAA boasts high claims satisfaction ratings according to J.D. Power.

Read reviews of USAA auto insurance.

Best discounts for drivers over 55: The Hartford for AARP

Here’s why: The Hartford offers car insurance with rates specifically designed for AARP members. If you’re over 50 and an AARP member, you could save up to 10% on your premium.

• Available coverage — Car insurance coverage options include roadside assistance, disappearing deductible and accident forgiveness.
• Additional discounts — Earn discounts for bundling, paying in full, getting an online insurance quote, having safety features, owning hybrid or electric vehicles, taking a defensive driving course and participating in the TrueLane safe driving program.

Read reviews of The Hartford auto insurance.

Best discounts for students: State Farm

Here’s why: State Farm may offer one of the best discounts for earning good grades among major insurers. Plus, the company offers multiple ways for students and younger drivers to save money on their premiums.

• Good student discount — Students who get good grades may save up to 25% on their premiums through age 25.
• Additional student discounts — You may also qualify for discounts for taking a driver education course or if you attend school away from home and only use your car during vacations.
• Incident-free discount — With State Farm’s Steer Clear program, drivers under 25 with a three-year clean driving record could save as much as 15%.
• Telematics option — Drivers who participate in State Farm’s Drive Safe and Save program could save up to 30%.

Read reviews of State Farm auto insurance.

FAQs about car insurance discounts

How we picked these insurers

We looked at 11 of the top national traditional insurance companies and compared how their discounts stacked up in various categories.

In addition to identifying the most-generous discounts, we looked at available coverage options and customer satisfaction ratings according to J.D. Power. Insurance companies also won points for having multiple overall discount options or within a specific category.

Editors’ take: With Freeway’s car insurance services, you can get a variety of quotes in one place. The company’s online quote system is user-friendly and available in all 50 states. But Freeway doesn’t write its own insurance policies — it’s a broker. So you’ll have to look elsewhere if you want to work directly with an insurance provider.

Freeway auto insurance at a glance

Pros

• Available in all 50 states
• Wide range of insurance products available
• User-friendly online quotes process

Cons

• Doesn’t write its own insurance
• No mobile app

What you need to know about Freeway auto insurance

Founded in 1987, Freeway is a privately held insurance distribution company now part of insurance broker Confie. Freeway partners with some of the country’s biggest carriers as well as smaller, lesser-known insurers, and has about 2,000 employees that identify insurance policy options for its customers.

Available in all 50 states

Freeway car insurance products are available in all 50 states because the company works with providers who collectively cover the whole U.S. However, Freeway only has physical offices in 22 states. Freeway offers customer service in both English and Spanish.

User-friendly online quotes process

To get an auto insurance quote through Freeway, you’ll have to provide info about who you are, the kind of car you drive, how you use your car and the kind of insurance you’re looking for. Unlike some companies, which redirect users to a third-party system, Freeway’s quotes process keeps you on the Freeway website and is relatively easy to use. An agent will contact you if the company needs more information to calculate your quote.

Doesn’t write its own insurance

Freeway is an insurance distributor, which means it can help you compare insurance policies, coverages and costs, but it doesn’t underwrite the insurance policy you’re buying. Instead, it’s selling you insurance underwritten by an insurance provider and taking a fee for providing that service.

Auto coverage offered by Freeway

Freeway customers can access an array of insurance products, including car, motorcycle, RV, motorhome, boat, ATV, snowmobile, classic car and SR-22 insurance. Non-auto insurance options include homeowners, renters, manufactured home, life, health, dental, pet, business, landlord and identity theft protection. It can also help you find extras like roadside assistance, windshield repair and car registration renewals.

Auto insurance discounts offered by Freeway

Like the insurance policies, the discounts you get on your car insurance will likely come from the insurance provider, not Freeway. However, Freeway claims that customers may get exclusive insurance discounts by using its services.

Discounts are one of the key things to look for when shopping around for car insurance. Look for common savings opportunities like good student discounts, safe driving discounts and discounts for bundling multiple vehicles or policies.

FAQs about Freeway auto insurance

Not sure if Freeway auto insurance is right for you? Consider these alternatives.

• Jerry: Like Freeway, Jerry is an insurance comparison tool. Its automated experience could be good for customers comfortable shopping for car insurance online.
• Kemper: This insurance company may be good for drivers deemed high-risk who are looking for nonstandard insurance options.

Editors’ take: Encompass car insurance could be a good option for younger drivers looking to cash in on discounts or those interested in packaging their key insurance products with the same company. Encompass policies are only issued through a network of independent agents, so if you’re interested in an online-centric insurance experience, you may want to look elsewhere.

Encompass auto insurance at a glance

Pros

• Several possible discount opportunities
• May be a good option for families with teen drivers
• EncompassOne policy combines several coverages

Cons

• Not available in every state

What you need to know about Encompass auto insurance

Encompass, an Allstate subsidiary, is one of the largest insurance companies with policies sold exclusively by independent agents.

It offers home and auto insurance policies, plus other insurance products, including business insurance, motorcycle insurance, RV insurance, boat and watercraft insurance, and identity theft protection.

Its EncompassOne policy is available in three different coverage tiers and offers a comprehensive package of insurance coverages.

May be a good option for teen drivers

Encompass offers several insurance features that may be helpful for younger drivers, including unlimited accident forgiveness and discounts for students who get good grades. Drivers under 21 who have actual experience and completed a driver’s education course and students who live without a vehicle at a school at least 100 miles away from home are also eligible for discounts.

EncompassOne policy combines several coverages under one package

The EncompassOne policy is a package policy that includes coverage for home, auto and other personal possessions. This option may simplify the insurance process by combining premiums and deductibles with one agent. Plus, customers can choose their coverage limits and features for an insurance package that fits their needs.

Not available in every state

Encompass doesn’t currently provide insurance products in every state, so you’ll need to check with the insurer if it offers coverage in your state before committing to Encompass.

Auto coverage offered by Encompass

Encompass offers auto insurance in three tiers — special, deluxe and elite. In addition to basic collision and liability coverage, Encompass policies offer optional features, including new car replacement, accident forgiveness, loan/lease gap coverage and roadside assistance.

Auto insurance discounts offered by Encompass

Drivers may also be eligible for a wide range of auto insurance discounts with Encompass, including the following:

• Safe driver bonus
• Future effective date discount
• Automatic payment discount
• New car discount
• Homeowners discount
• Good payer discount
• Defensive driver discount
• Anti-lock brake discount
• Anti-theft device discount
• Passive restraint system discount

FAQs about Encompass car insurance

Not sure if Encompass auto insurance is right for you? Consider these alternatives.

• Liberty Mutual — If you’re a good driver, you could save on car insurance by signing up for the company’s usage-based insurance program, RightTrack.
• Geico — This insurance company may be ideal if you’re looking for a way to bundle multiple insurance policies under one provider.

Editors’ take: Otto insurance offers quotes from many insurers without offering policies itself. Otto could be a good tool to compare quotes for those looking to shop for car insurance. Be aware that by submitting your information to the platform, you may be signing up for promotional communication from companies and individual agents. Other companies offer similar without unwanted phone calls.

Otto auto insurance at a glance

Pros

• Quickly compare rates from several insurance providers
• Partners with national, regional, and individual insurers
• Connect with an agent to choose a policy

Cons

• Doesn’t offer insurance policies
• You may get a lot of promotional communications
• Information about this company is limited

What you need to know about Otto auto insurance

Otto is a lead generation company headquartered in Miami Beach, Florida. The company doesn’t offer insurance products — it uses your information to match you with the best insurance quotes and policies from hundreds of insurance companies.

Otto appears to be a legitimate business. But information about it is limited. It isn’t accredited by the Better Business Bureau, and there’s no information about the company from J.D. Power or the National Association of Insurance Commissioners.

Doesn’t offer insurance policies

Otto doesn’t issue insurance products directly to customers. Otto uses your personal information to match you with an insurance provider and uses a third-party site to make transactions.

Partners with national, regional, and individual insurers

Otto’s remotely distributed team works with hundreds of insurers of all sizes, from national and regional companies to individual agents. The company lists several well-known insurance partners on its website, including Nationwide, Progressive and American Family.

You may get a lot of promotional communications

To get started using Otto’s service, you’ll need to provide some personal information, including identifiers like your name and address, contact information, vehicle information and gender. Otto stores that data and other information like what products you purchased or considered and how you interacted with the Otto website.

By providing your information, you may be consenting to receive promotional emails or phone calls from Otto and other third-party service providers.

Auto coverage offered by Otto

Otto doesn’t provide insurance products directly, so the coverage you get using Otto will depend on which insurance company you choose. Otto works with several national insurers that offer all the standard coverage options, plus extras including roadside assistance, accident forgiveness and more.

Auto insurance discounts offered by Otto

Similarly, the discounts you qualify for will depend on your insurance provider. Some standard discounts to look for include safe driver discounts, good student discounts, discounts for bundling multiple policies or vehicles and discounts for participating in a usage-based insurance program.

FAQs about Otto car insurance

Not sure if Otto auto insurance is right for you? Consider these alternatives.

• Jerry: Like Otto, Jerry doesn’t provide insurance products directly but lets you compare many auto quotes simultaneously. This company also checks for insurance discounts before your next renewal.
• Geico: This insurance company offers various standard coverage options and possible discounts. Tech-savvy drivers may appreciate its robust mobile app.

Editors’ take: Lemonade car insurance could be an excellent choice for people interested in a usage-based insurance model — though it’s only available in select states. Lemonade uses telematics to gain insights on your driving safety and mileage to calculate insurance premiums. If you’re environmentally conscious, you’ll be happy to know that Lemonade plants trees based on the number of miles you drive to offset carbon emissions. Plus, drivers of electric vehicles can save on their policies. Lemonade is app based, so if you’re looking for a human connection, you may want to consider a different insurer.

Lemonade auto insurance at a glance

Pros

• Usage-based premiums and discounts
• Easy claims process
• Tree-planting program

Cons

• Not available in most states
• Location tracking required

What you need to know about Lemonade auto insurance

Founded in 2015, Lemonade offers renters, homeowners, car, pet and term life insurance. The company uses artificial intelligence to help users buy insurance, file claims and receive payouts. Lemonade takes a flat fee from your insurance policy and donates the leftover money from premiums to charity.

Usage-based premiums and discounts

Lemonade uses location-based information, called telematics, derived from its mobile app to determine how much your car insurance premium should cost. Your premium is based on how much and how safely you drive, not by demographics.

Fast and easy claims process

Lemonade’s claims process uses artificial intelligence to make payouts quickly. Users file a claim on the Lemonade app, and the AI runs anti-fraud algorithms. If the claim is approved, Lemonade pays it out “instantly.” Otherwise, Lemonade’s person-run claims department handles the claim. According to the company, 30% of claims are handled instantly.

Tree-planting program

Using its app, Lemonade tracks how many miles you drive. It offers lower rates to lower-mileage drivers. It also uses your mileage data to plant trees. The more you drive, the more trees Lemonade plants to offset your carbon footprint. Electric vehicles and hybrids are eligible for additional policy discounts.

Auto coverage offered by Lemonade

Lemonade offers full-coverage auto insurance (typically defined as liability, comprehensive and collision), with a few extras, like temporary transportation coverage, extended glass coverage and roadside assistance. Other coverage options include medical payments coverage, personal injury protection and underinsured/uninsured motorist coverage.

Auto insurance discounts offered by Lemonade

Lemonade claims to offer car insurance policies for as low as $30 a month. One of Lemonade’s main draws is its use of app-based telematics, which collects data about how often and how safely you drive via the Lemonade mobile app. That means safe drivers, as well as low-mileage drivers, may pay less. Here are some other car insurance discounts Lemonade offers.

• Discount for enabling app permissions
• Discount for signing up before your coverage start date
• Discounts for electric and hybrid cars, including coverage for emergency charging and damage to your wall charger
• Discounts for bundling car and home, renters, pet health and term life insurance policies

Not sure if Lemonade auto insurance is right for you? Consider these alternatives.

• Progressive: Progressive could be another good option if you’re looking to save money by tracking your driving habits.
• Safeco: If you’d prefer to work with a local agent, you may want to check out this insurance company.

Bundling your home and auto insurance is a common way to save money on your premium.

Insurance bundles can be a good way to reduce the cost of your insurance policy and simplify your insurance ecosystem under one company and account. Qualifying for a multipolicy discount can be a smart move, but you shouldn’t base your entire decision on whether or not a company offers this discount.

Read on to learn more about when bundling your insurance makes sense and which companies offer home and auto insurance bundles.

• Bundling car and home insurance
• Which companies offer car and home insurance bundles?
• Should you bundle your car and home insurance?
• FAQs about car and home insurance bundles

Bundling car and home insurance

There are many things to consider when you’re shopping for insurance. In addition to making sure you’re selecting the right amount and type of coverage for your needs, you should also be sure you’re making a choice that fits your budget.

Many insurance companies offer car insurance discounts for things like paying your bill upfront, having certain safety features in your car, being a safe driver or being a member of certain affiliation groups. One of the most common ways to save money on your insurance premium is by bundling multiple policies, like your car and home insurance, with the same insurance company.

Several insurance companies offer bundling discounts to incentivize their customers to use more of their insurance products — and it can be a great way to save money on your insurance bills.

Which companies offer car and home insurance bundles?

Multipolicy discounts are some of the most common discount options insurance companies offer. Here are a few insurers that offer this type of savings opportunity.

Progressive

Progressive offers several multipolicy discount options, like a discount for bundling your auto policy with your home, condo, renters, RV, boat or motorcycle insurance. You can get a multipolicy discount for bundling any two or more Progressive insurance products.

Progressive auto insurance is available in all 50 states, and the range of products it offers is wide — though not all of its products may be available in every state. Coverages include standard car and homeowners’ insurance and policies for more unique items, such as Segways, watercraft, jewelry and events.

Progressive also offers many other opportunities to save money on your premium, but the average savings for customers with a multipolicy discount may be a bit low, at just 7%.

Geico

Geico offers its customers a wide range of discounts, including a multipolicy discount. Customers can qualify for a multipolicy discount when they bundle multiple vehicle policies (like car, motorcycle, condo and motor home) or a vehicle policy with a homeowners or renters policy.

Geico says that customers can save up to 25% with a multivehicle discount, while the savings amount varies for a multipolicy discount. Other available discounts include vehicle equipment discounts, driver education discounts and discounts for having safe driving habits.

Unfortunately, some discounts and coverage options aren’t available in every state, so you’ll have to do your own research to see if Geico is the right choice for you.

Allstate

Allstate says that customers can save up to 25% on their policy by bundling their home and auto insurance policies. Other common bundles include combinations of car insurance, motorcycle insurance, condo insurance and renters insurance.

As an Allstate customer, you can use the company’s website or robust mobile app to manage your policies, make a claim, pay your bill and more, which can be an extra helpful tool when you’ve bundled multiple policies under one account.

USAA

USAA offers financial products specifically for members of the U.S. military, their spouses and children of USAA members. USAA says members can save up to 10% when they bundle their home and auto insurance policies.

Discounts for bundling multiple vehicles are also available. USAA offers several policies, services and perks specifically for military members and their families, but it’s not available to everyone.

Should you bundle your car and home insurance?

Your insurance needs are unique, so there’s no one-size-fits-all solution when shopping for insurance policies or companies. While saving money on your insurance is important, bundling discounts should be just one piece of the puzzle for finding the right insurance for you.

Reasons to bundle car and home insurance

• You could save money on your premium.
• Simplify your life by managing multiple policies with the same agent or company. Having just one login for multiple policies can save you time and paperwork. Plus, working with the same agent could help ensure you’re well-protected across your high-value items.

Reasons not to bundle car and home insurance

• You may find better coverage elsewhere. If you have specific insurance needs, like if you’re deemed a high-risk driver by insurance companies, or need coverage for a classic car or a vehicle with custom parts, the best company for you could be one that doesn’t offer a robust bundling discount.
• You could find cheaper insurance even without a discount. Your insurance company may not offer a large discount for bundling, but it could offer other discounts, like a safe driving or usage-based insurance program, that could save you even more money in the long run.

FAQs about car and home insurance bundles

What’s next?

Shopping for car insurance can feel overwhelming. First, take the time to determine the type and amount of coverage you need. When comparing insurance quotes, be sure to research all of the discounts you may qualify for, including discounts for bundling your car and home insurance.

Note from our editor: Maybe you’re searching for car insurance for the first time or want to do some insurance shopping to help lower your monthly premium? This article can serve as a starting point for your car insurance research. There are a lot of factors when it comes to the cost of car insurance, so while you may not see the exact premiums we’ve researched, they can give you an idea of some of the insurers offering the cheapest rates in your state.

Idaho offers several destinations to take in the state’s natural beauty, but you must ensure your ride is protected before you start your road trip.

We looked at estimated car insurance rates from insurance companies across Idaho to find the average cost of car insurance and which insurers offer the cheapest estimated rates for several driver profiles.

We based our calculations on a relatively neutral driver profile — no accidents, tickets or claims, for example — to evenly compare and get a baseline view of insurers’ rates for basic coverage (see our full methodology). Your rates may be higher or lower given your driving history and other factors that affect car insurance, like your vehicle type, mileage, coverage options and age.

Read on to learn about Idaho’s average car insurance rates and our findings for the cheapest options.

• Cost of car insurance in Idaho
• 5 cheapest car insurance companies in Idaho
• Cheapest state-minimum car insurance in Idaho
• Cheapest car insurance for good credit in Idaho
• Cheapest car insurance for poor credit in Idaho
• Cheapest car insurance for drivers with multiple claims in Idaho
• Cheapest car insurance for young drivers in Idaho
• Idaho auto insurance requirements
• Is usage-based insurance available in Idaho?
• FAQs about the cheapest car insurance rates in Idaho
• Methodology

Cost of car insurance in Idaho

Average monthly premiums for basic-coverage car insurance in Idaho range from just over $35 to over $75, depending on the type of coverage and driver profile.

Average monthly auto insurance premiums in Idaho

5 cheapest car insurance companies in Idaho

As detailed in our methodology, we’ve calculated the car insurance rates in this article based on a specific Idaho driver profile.

Unless otherwise noted, our driver profile is 36 to 45 years old, and has a 680 to 719 credit score, no tickets or coverage gaps and a $20,000 to $30,000 car value.

1. American National P&C

American National P&C offers car insurance through a network of local agents. Standout additional coverage options include roadside assistance, gap insurance and replacement parts coverage. Plus, customers involved in an accident with other cars insured by American National P&C can get discounted deductibles.

2. USAA

USAA is available to military members and their families. USAA auto insurance is available nationwide with various discount opportunities, including unique savings for deployed military members. The USAA app allows members to manage their policy from their mobile devices. USAA offers standard and optional coverage options. Read reviews of USAA to learn more.

3. Geico

Geico offers a wide range of coverage options and many opportunities to save money for safe driving habits, safety equipment and customer loyalty. Its mobile app allows users to manage their policies, pay bills, request roadside assistance and more. Read reviews of Geico to learn more.

4. Auto-Owners Insurance

Auto Owners was founded in 1916 and offers various insurance products, including car insurance. Auto Owners isn’t available in all states, and prospective customers must contact a local agent to get a quote. Auto Owners offers insurance for many types of vehicles, and you could save money on your premium by bundling. Read reviews of Auto Owners to learn more.

5. Farm Bureau of ID Group

Farm Bureau Insurance of Idaho offers a wide range of insurance products, including car, home, renters, business, ranch and recreation coverage. The company offers customizable insurance to fit your needs and various ways to save, including safe driver and good student discounts.

Cheapest state-minimum car insurance in Idaho

Idaho requires drivers to carry a minimum 25/50/15 insurance policy. This required insurance, called state-minimum insurance, is typically the cheapest car insurance you can buy. It may be suitable coverage for older vehicles or someone looking to pay as little as possible on their premium.

These five insurance companies may offer the lowest-cost insurance for drivers seeking state-minimum coverage.

5 cheapest car insurance companies in Idaho for state-minimum coverage

Cheapest car insurance for good credit in Idaho

Insurers look at several things to determine the cost of car insurance. One of the big factors is your credit. Typically, customers with high credit scores will pay less for car insurance than customers with poor credit.

These companies may offer the cheapest car insurance for drivers with good credit.

5 cheapest car insurance companies in Idaho for those with good credit

Cheapest car insurance for poor credit in Idaho

Drivers with poor credit scores may pay more for car insurance than drivers with good credit. But there are other ways to keep costs down, like maintaining a record of safe driving behavior.

These five car insurance companies could offer the lowest rates for drivers with poor credit.

5 cheapest car insurance companies in Idaho for those with poor credit

Cheapest car insurance for drivers with multiple claims in Idaho

Your record also plays a role in how much you pay for car insurance. If you have made multiple claims with your insurer, you may be paying more for car insurance.

The following companies have the lowest estimated rates for drivers with multiple claims by insurance companies.

5 cheapest car insurance companies in Idaho for multiple claims

Cheapest car insurance for young drivers in Idaho

Finally, your age can be a factor in the amount you pay for car insurance. Generally, younger drivers are considered riskier to insure, and their policies may cost more than older drivers.

These five companies have the lowest estimated rates for young drivers between the ages of 18 and 21.

5 cheapest car insurance companies in Idaho for young drivers

Idaho auto insurance requirements

Idaho requires $25,000 per person and $50,000 per accident for bodily injury liability, and $15,000 for property damage liability. If you have a car loan or lease, your coverage responsibilities may be more extensive.

Is usage-based insurance available in Idaho?

Usage-based insurance is a type of vehicle insurance that allows customers to pay premiums based on their driving behavior. In Idaho, drivers may be able to utilize their insurers’ UBI programs to save money on their car insurance.

FAQs about the cheapest car insurance rates in Idaho

Methodology

The estimated rates in this article are the lowest estimated rates based on the profile of a driver ages 36 to 45 living in Idaho. Unless otherwise noted, the rates displayed assume a single driver on the insurance policy with no tickets on their driving record and no claims or coverage lapses. The vehicle used in this estimate is valued between $20,000 and $30,000 and has annual mileage of 12,000 to 15,000. Estimated rates for insurance for good credit apply to scores of 720 or higher. Estimated rates for insurance for poor credit apply to scores from 350 to 579. Estimated rates for young drivers include those ages 18 to 21. Estimated rates for those with multiple claims are calculated based on two claims.

Note that the rates are provided every six months by Quadrant Information Services. Quadrant Information Services doesn’t include all insurance companies in its rate data. These are estimated rates meant only to provide a frame of reference and comparison. Your rates may vary depending on factors such as age, vehicle driving habits, and history.

The average monthly premium for full coverage car insurance includes bodily injury, property damage, uninsured motorist, personal injury protection, collision and comprehensive coverages. The average monthly premium for state-minimum car insurance includes Idaho-mandated 25/50/15 insurance policy.