Car insurance premiums often feel like a fixed cost — but what if you could lower yours just by sharing how much (or how little) you drive? That’s exactly what mileage tracking apps offer. These tools are reshaping how insurance companies assess risk, and they could unlock serious savings for drivers who don’t rack up miles or practice safe habits behind the wheel.
Welcome to the world of usage-based insurance (UBI). If you’re not familiar with it, don’t worry — we’re breaking down how mileage tracking apps work, who should use them, and how they might help you pay less for car insurance.
What Is Usage-Based Insurance?
Usage-based insurance (UBI) is a type of auto policy where your premium is based on how much and how well you drive, rather than only relying on standard metrics like age, ZIP code, or vehicle type. It rewards low-mileage and safe drivers by calculating risk using real driving behavior.
Most UBI programs use mileage tracking apps or plug-in devices (also called telematics) to monitor your driving. Insurers then use this data to adjust your premium — sometimes by 30% or more.
How Mileage Tracking Apps Work
There are two common types of telematics programs:
App-Based Telematics
These use your smartphone’s sensors to gather data on:
Total miles driven
Time of day you drive
Speeding
Hard braking or sudden acceleration
Phone use while driving (some apps track screen movement)
Plug-In Devices
Installed in your vehicle’s OBD-II port, these track similar data with more accuracy and don’t rely on your phone.
Either way, the data is collected in real time and sent to your insurer, often via a dedicated dashboard or app. You can typically see your score, track trends, and estimate potential discounts.
Who Offers Mileage-Based Insurance?
Many major insurers offer usage-based programs. Here are a few of the most popular:
| Insurance Company | Program Name | Discount Potential | Type |
|---|---|---|---|
| Progressive | Snapshot | Up to 30% | App or Plug-In |
| State Farm | Drive Safe & Save | Up to 30% | App |
| Allstate | Drivewise | Up to 40% | App |
| GEICO | DriveEasy | Variable | App |
| Liberty Mutual | RightTrack | 5–30% | App or Plug-In |
Note: These programs often offer an initial discount just for signing up, even before you start driving.
Key Benefits of Using Mileage Tracking Apps
Save Money — Especially If You Drive Less
The fewer miles you drive, the lower your risk of an accident. Mileage-based apps reward low-mileage drivers with discounts. If you:
Work remotely
Carpool
Take public transit
Drive only on weekends
…you could see major savings over traditional pricing.
Encourage Safer Driving Habits
Seeing your driving behavior in real time makes you more aware. Many users say they become better drivers after seeing how often they brake hard or use their phone. Safer habits = fewer accidents = long-term savings.
Customized Premiums
Instead of being lumped into risk pools based on age or location, your rate is customized to how you actually drive. It feels more fair — and often is.
Potential Drawbacks and Concerns
No system is perfect, and there are some things to consider before enrolling:
Privacy Concerns
Yes, these apps track your location, speed, and behaviors. If you’re uncomfortable with data sharing, this might not be for you. Always read the program’s privacy policy and data use terms.
Driving Style Penalties
Some apps penalize what they interpret as “risky behavior” — even if you’re a generally good driver. Examples include:
Sudden braking to avoid a hazard
Driving late at night (when accident rates are higher)
Rapid acceleration on highways
Check how your insurer scores these behaviors before enrolling.
Possible Rate Increases
Some programs adjust rates upward for poor driving. Others only offer discounts, meaning your rate won’t go up but you might not save. Be clear on what your insurer’s policy is.
Is It Worth It for You?
Mileage tracking apps and usage-based insurance make the most sense if:
You drive fewer than 10,000 miles per year
You have a clean driving record
You’re willing to have your driving tracked
You frequently drive during off-peak hours
On the flip side, if you drive a lot, live in a high-traffic area, or regularly drive at night, UBI programs might not offer you much savings — or could even result in higher rates.
Tips for Getting the Most Out of Mileage Tracking Programs
1. Understand the Rules Before Signing Up
Some insurers give you an upfront discount for enrolling but may increase your rate later if your score is low. Know what you’re committing to.
2. Drive Conservatively
Avoid quick stops, hard turns, or speeding. The smoother your habits, the better your driving score.
3. Minimize Late-Night Driving
Many apps ding points for nighttime driving (especially between 12–4 a.m.) due to higher accident risk. If possible, avoid these hours.
4. Check Your Progress
Most apps show a score or trip history. Use it to adjust your behavior and monitor how it impacts your potential discount.
5. Ask About Program Duration
Some programs only track you for 60–90 days, then lock in your rate. Others continuously monitor. Choose the option that fits your comfort level.
What About Pay-Per-Mile Insurance?
Pay-per-mile insurance is another form of UBI, where you pay a base rate plus a per-mile fee — usually tracked through a plug-in device.
Great options for:
Urban dwellers
People who drive under 6,000 miles/year
Second or weekend cars
Companies offering this model include:
Metromile
Mile Auto
Allstate Milewise
If your driving varies month to month, this option could be more cost-effective than a flat premium.
Sources:
Final Thoughts: Track Less, Pay Less
Mileage tracking apps are changing the way insurers price risk — and for many drivers, that means more control and more savings. Whether you’re a low-mileage driver, a safe driver, or both, usage-based insurance can reward you with lower premiums and better driving habits.
Just make sure you understand the rules, review your habits, and find a program that fits your lifestyle and comfort level. In the end, it’s not just about paying less — it’s about driving smarter.
