To get the most out of telematics and usage-based car insurance in 2025, focus on these key strategies and best practices:

1. Drive Safely and Consistently

• Telematics programs track behaviors such as speed, hard braking, rapid acceleration, cornering, phone use, and time of day you drive.

• Safe habits—like smooth acceleration, gentle braking, and avoiding late-night driving—are rewarded with the largest discounts. Unsafe behaviors can actually increase your premium in some programs.

2. Choose the Right Program and Device

• Major insurers offer telematics via plug-in devices, in-car systems, or mobile apps (e.g., Progressive Snapshot, Allstate Drivewise, State Farm Drive Safe & Save).

• Select the program that best fits your lifestyle and comfort with technology. Some newer vehicles have built-in telematics that can be enabled for insurance purposes.

3. Monitor Your Driving and Use Feedback

• Many programs provide real-time feedback and driving scores through apps or dashboards.

• Use this data to identify risky habits and adjust your driving to maximize savings and safety.

4. Maximize Discounts and Savings

• Telematics-based insurance can offer significant premium reductions, especially for low-mileage, remote, or senior drivers, and those with safe driving records.

• Some insurers provide additional perks, like theft tracking or maintenance alerts, through their telematics platforms.

5. Understand Privacy and Data Use

• Be aware that telematics collects detailed driving and location data. Insurers must be transparent about what is collected, how it’s used, and how it’s protected.

• Review privacy policies and only consent to data sharing you are comfortable with.

6. Keep Vehicles Well-Maintained

• Telematics can also monitor vehicle health. Keeping your car in good condition can help avoid negative marks for breakdowns or maintenance issues, indirectly supporting lower rates.

7. Ask Your Agent or Insurer for Guidance

• Many consumers are unaware of telematics options or misunderstand how they work. Discuss these programs with your agent to ensure you’re presented with all potential savings opportunities.

8. Review Your Policy Regularly

• As your driving habits or vehicle usage changes, re-evaluate your telematics program to ensure it still offers the best value.

Key Benefits of Telematics and UBI in 2025:

• Personalized pricing based on actual behavior, not just demographics.

• Potential for significant savings—especially for safe, low-mileage drivers.

• Improved safety through feedback and behavior modification.

• Greater control over your insurance costs and risk profile.

By combining safe driving, active monitoring, and clear communication with your insurer, you can maximize the discounts and benefits offered by telematics and usage-based car insurance in 2025.