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Some of the best car insurance companies are now offering data-driven safe driving apps, also called telematics, or usage-based car insurance. With safe driving apps, car insurance customers agree to share some of their driving data and everyday behavior behind the wheel with the insurer. If you drive safely, you can qualify for discounts on car insurance.

But do safe driving apps actually lead to safer driving? New research from Allstate shows that telematics car insurance might help keep people safer behind the wheel.

Let's look at a few reasons why safe driving apps can reduce your car crash risks -- and your car insurance costs.

Allstate Drivewise safe driving app: 25% lower risk of severe crashes

According to Allstate's data, Allstate customers who use the Drivewise® safe driving app are 25% less likely to have a severe collision compared to Allstate customers who don't use the app. (A severe collision for this purpose is defined as having bodily injury claims costs of $100,000 or more.)

The Allstate Drivewise app tracks a few different aspects of driving, including safe speeds (whether you stay under 80 miles per hour), safe stops (how gradually or suddenly you hit the brakes), and safe driving times (if you drive late at night on weekends, you could be at higher risk of crashing). It's interesting to see how drivers who participate in this kind of safe driving tracker app might see big reductions in their serious collisions.

Other ways that Allstate Drivewise customers drive safer

The Allstate Drivewise app also can help people track their safe driving habits (and show their lower-risk driving behaviors to their insurance company). According to the recently released data survey, Allstate Drivewise customers are also more likely to have safe driving habits in a few other ways.

Allstate said that its Drivewise customers:

• Handle their phones 44% less while driving compared to non-Drivewise customers (this can help reduce car crashes related to distracted driving)
• Spend 23% less driving distance traveling at high speed
• Have an 11% lower rate of hard braking

Less distracted driving, less high-speed driving, and a softer foot on the pedals can create a safer, less stressful, less collision-prone driving experience. Usage-based car insurance like Allstate Drivewise could potentially help reduce fatal motor vehicle crashes, which have tragically surged in recent years. As of 2023, 45,000 people in the U.S. died in car crashes, up 13.6% compared to the last pre-pandemic year of 2019.

How Allstate Drivewise and other safe driving apps help you save money on car insurance

Along with saving lives, safe driving apps can help people qualify for discounts. Many car insurance shoppers might want to try this new strategy to save money, because car insurance costs have been skyrocketing. During 2022–2023, the average price of car insurance increased by about 20.3%.

When you choose to sign up for a safe driving app like Allstate Drivewise, you can qualify for a lower rate on your car insurance based on your actual driving behavior and decisions behind the wheel. If you feel as if your car insurance costs have gone up unfairly, now is your chance to prove to your car insurance company that you're a low risk and you deserve a lower-cost car insurance plan.

"We offer customers the choice to pay a rate based on their driving," said Ginger Purgatorio, executive vice president at Allstate. "We find that when customers choose to use Drivewise on their Allstate mobile app, they tend to drive safer. And those who drive safer not only get in fewer accidents, but also can save money on their auto insurance."

Allstate does not promise specific cost savings from its Drivewise app. Your exact discounts will vary based on where you live and how you drive, and Allstate Drivewise is not available in some states. But Allstate promises to give you an instant discount just for signing up for Drivewise. And some car insurance companies with the best discounts for safe drivers offer savings of up to 30% to 40%.

Bottom line

Usage-based car insurance can help people get cheaper premiums. You just have to agree to share some driving data with your car insurance company. Allstate's recently announced data survey shows that its Drivewise safe driving app customers have a significantly lower risk of severe crashes and unsafe driving behaviors.

Based on the success of safe driving apps like Drivewise, look for more car insurance companies to encourage customers to sign up for discounts based on safe driving data. And perhaps there will be bigger reductions in car insurance premiums for safe drivers coming soon.

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