Have you ever wondered why you can’t just pay for car insurance only when you need it? This is the concept of usage-based insurance, also known as pay-as-you-go insurance or pay-as-you-drive insurance. Regardless of the name used, the concept is the same. Allstate is a leading name in auto insurance and has been providing insurance products to its customers since 1931. Allstate has received numerous awards in customer satisfaction including an “A+” rating through Insure.com based on customer surveys. Allstate also has an “A+” Superior rating through A.M. Best insurance rating organization.
The company advertises its usage-based auto insurance product, Drivewise, as a program that awards discounts to its auto insurance customers who are safe, low-mileage drivers. It is available in Colorado, Michigan, New Jersey, New York, Arizona, Illinois, and Ohio.
How It Works
As with the Progressive Snapshot program, Drivewise uses a similar telematics device installed underneath your car’s steering wheel in the diagnostic port. With the data gathered from the device, the insurance company tracks when and where you drive, the speed at which you are driving, your mileage, hard breaking events and other driving habits. Allstate then analyzes this data and determines what type of auto insurance discount you are eligible to receive.
You can realize a discount on your auto insurance premium of up to 30 percent with the Drivewise program. Policy holders who participate in the program will receive an automatic 10 percent discount for enrolling and after that, additional savings will be calculated and deducted from your policy premium every six months. To maximize the discount you receive, avoid these driving behaviors:
· Driving at or above 80 mph
· Driving more than 25-30 miles per day (Drivers with 12,000 miles or lower per year will save the most)
· Driving between the hours of 10 pm and 4 am
· Hard or extreme braking (defined by Allstate as a deceleration of at least 8 mph in one second)
Allstate says on its website that any one incident should not have an effect on your overall safe driving score. However, if you have a consistent pattern of hard braking events, for example, this could bring your score down. You must drive your vehicle a minimum of 90 days over a course of the six-month policy period to be eligible to receive a discount.
The company also states that while you may not realize any savings based on your driving performance, your policy premium will never go up as a result on your performance rating score on Drivewise. The data gathered is used to determine any discount you receive and is calculated on a rolling basis by the past 12 months of driving history.
Drivewise is not available in every state and the rewards may vary based on your driving behaviors. To use the Drivewise app, you must own a smartphone and download the Allstate mobile app and activate Drivewise.
Privacy of Personal Data
Your driving performance data gathered by the Drivewise device is available for you to view on Allstate’s website and is also available on your smartphone by downloading the Allstate Mobile app. You can purchase this app from the iTunes store or Google Play. The website has a detailed list of data collected by Drivewise. Not all of the data gathered is used in determining your auto insurance discount. Your data can be seen by you, your Allstate agent and Allstate customer service representatives.
The Bottom Line
If you are considered a high-risk driver and are currently paying a high auto insurance premium, you may be able to earn some discounts through having your driving habits recorded and reported to the insurance company through a usage-based auto insurance program such as Drivewise.
You should not except to receive the full discount available unless you drive very little and only during the morning hours in areas where you will not have to apply your bakes quickly. Average savings reported by customers using the Drivewise Program by Allstate are approximately 14 percent per vehicle.
If you have questions about Allstate’s Drivewise program, visit the Allstate website, email the Allstate team at MobileAppSupport@Allstate.com or call 1-877-810-2920 (Hearing impaired: 1-800-877-8973). You can also visit a local Allstate agent for more information. To find an agent near you, you can use the agent locator on the Allstate website. Just enter your zip code, city or state and click search to find an agent.