What is Telematics?

Telematics, or what we call usage-based insurance, uses your driving habits and a score to determine the amount you’ll pay for car insurance.

  • Telematics, or what we call usage-based insurance, uses your driving habits and a score to determine the amount you'll pay for car insurance.
  • A smartphone app is used, or a small leave-in device is simply plugged into your car, to collect various driving data. 
  • The key is for you to understand your habits, drive safer and potentially receive a better rate on your insurance premium. That's right, you may get a big discount for safer driving.
  • Telematics has a positive impact on driving behavior:
    • Speed was reported as the top driving behavior in fatal crashes in 2013.
    • In 2014, semi's saw a 50 percent decrease in unsafe events (hard braking, sudden lane changes and accelerations, when using telematics.
    • 55 percent of drivers reported making changes to driving habits after having a telematics device in their cars.
  • 1980s: European Parliament launched a resolution to promote road safety. Started researching telematics.
  • 1994-96: Parliament creates plan to implement telematics.
  • 2004: Major insurance company starts offering discounts to customers if they choose to use telematics to collect driving data. 
  • 2016: We launched State Auto Safety 360, which gives customers up to a 50 percent discount if data shows safer driving scores.
  • The telematics story

tale of telematics video image

Talk to your agent about telematics

  • State Auto Safety 360 is a telematics program available as part of our Personal Lines Auto product.
  • Talk to an agent today to find out how you can start improving your driving habits - and start saving.