How can a safe driving app save you money?

Your auto insurance rate can be negatively impacted by factors beyond your control, like national driver demographic statistics or more claims from drivers in your area. Fortunately, there are ways you can save money with your insurance company, such as bundling multiple services or qualifying for discounts.

One way you might save is a safe driving discount. Insurance companies recognize that not all drivers are alike. They may reward drivers who do their part to make the road a safer place to be, avoid dangerous driving habits, and ultimately reduce the likelihood of an accident or another insurance claim.

So, what do you have to do to qualify for these discounts? And how much money can you save by participating in these programs? We'll walk you through what you need to know.

How do safe driving discounts work?

Just like the name implies, you can get a safe driving discount on your car insurance by driving safely. But how does your insurance provider know that you're a safe driver?

One way is to stay claim-free. If you maintain a good driving record over a period of time, many insurance companies will provide a discount.

Another option — and one that might get you a discount quicker — is to enroll in a safe driving program. When you sign up for these programs, you give your insurance provider permission to monitor your driving behavior to ensure you're being safe.

There are a variety of methods to do this. Some providers require drivers to install a tracking or telematics device in their vehicle, or they may use a service that comes preinstalled in your car.

Others, like the USAA SafePilot® program, use a mobile app that takes advantage of GPS and other sensors to capture data about your driving habits. All you do is download the app and start driving. It'll show you how well you're driving — and how you can improve.

Using this data, your insurance company provides any potential discounts you may receive on your auto insurance policy. Typically, your discount will be calculated and applied when your policy renews.

Do I need a spotless driving record to get a safe driver discount?

You don't need to have a perfect record to qualify for a safe driver discount. Plus, insurance companies only use your driving information to calculate a discount — not to evaluate your insurability or increase your premium. That said, your rate may vary based on other factors.

What if there are multiple drivers on my policy?

Each insurer's program may vary, but generally, if you have multiple drivers on your policy, your discount will be based on the average scores of all drivers. It may be wise to speak with your insurance provider to see how a safe driving program will apply to your unique household.

What do safe driving apps and devices track?

To classify you as a safe driver and offer you a discount, insurance companies need a little more information than just your word. After all, don't most of us think we're better than the average driver? That's where technology comes into play.

Car monitoring apps and devices use GPS and sensors to capture details about how you drive. For example, they may collect:

• Where you drive, and the number of miles driven.
• What time of day you drive.
• How frequently you use your car.
• Whether your braking and acceleration is smooth or abrupt.
• How fast you drive and whether you're speeding.
• If you're taking quick or sharp turns.
• If you're making hand-held versus hands-free phone calls.
• Whether you're handling your phone for texting or browsing.
• Whether you're the passenger or driver of the vehicle.

Every insurer, device and app are different. Not all insurers collect the same data about how you drive. Each program has its own methods for assessing driving behavior and applying discounts. What they all have in common, however, is that they're designed to help encourage and incentivize safer driving habits.

How much can I save with a safe driver program?

Discounts vary by insurance company and available discounts. For example, the USAA SafePilot program offers up to a 10% discount when you enroll, and up to 30% off your premium when your policy renews and your discount is calculated.‍ ‍ ^{See note 1}

After any discount is applied, your driving score resets and you have a clean slate to begin the next period until your policy renews again.

How can I improve my driving score and save more money?

It's simple: The safer you drive, the more likely you are to receive a bigger discount on your premiums. But what does safe driving look like? There are two main tips that help improve your driving score:

1. Take it nice and easy.

Try to avoid slowing or stopping abruptly, accelerating quickly and making sharp turns. When other drivers on the road have less time to see and react to your vehicle, it can increase the odds of an accident. Of course, there may be times when you'll need to react quickly to avoid an accident yourself. However, it's typically safer to avoid abrupt changes in speed or direction when possible.

For some programs, driving during peak traffic times or late at night can impact your score. Others may also factor in the number of miles driven.

2. Avoid distractions.

You know texting and driving don't mix. But other phone use can be risky as well — even if it seems harmless. Make sure to set your navigation route before you begin driving and try not to take phone calls. If you must make a phone call while driving, it's usually safer to use the hands-free calling feature.

Other distractions like eating food, personal grooming and reaching for dropped items can impair your ability to react. If that leads to harsh braking or cornering, your driving score and potential discount might take a hit.

Are there any risks with car monitoring apps?

If you're thinking about taking advantage of a safe driving discount program, you may be wondering whether there are any potential risks from allowing your insurance company to collect driving data.

Individual programs and providers may differ, but with USAA, you don't have to worry about driving data being used to increase your premium or influence your insurability. It's only used to calculate potential discounts.

Your privacy is taken seriously, and we'll never share your driving information with third-party or marketing companies, except as necessary for the administration of the SafePilot program.

If you sign up for the program but then change your mind and decide you don't want to participate, you can cancel your enrollment at any time.

Get rewarded for being a great driver.

Driving safely is a smart choice for you, your passengers, and the drivers around you. If you can get rewarded for doing it, why not participate? It's a great opportunity to lower your insurance rate without raising your deductible.

While signing up for a safe driving program doesn't guarantee you'll earn a discount, it can be a great incentive to help you and other drivers on your policy develop safer driving habits.