Usage-based car insurance
With usage-based insurance, the cost of your insurance is based on how much you drive and how you drive. If you only do a little bit of driving, your premiums are reduced to reflect this.
You’ll use a telematics device to track your driving with a device that plugs into your car, a mobile app or built-in service like OnStar or SYNC. The device tracks the miles you drive and your driving behavior — like hard braking and rapid acceleration. This allows your insurer to determine risk with a high level of accuracy, rewarding safe driving habits regardless of credit.
Is usage-based insurance for me?
If you’re working on repairing your credit and don’t drive often, usage-based insurance policy could benefit you. Insurance companies use personal driving habits — not a general credit score — to determine rates. But if you have risky driving habits, this type of insurance may not save you money.