Busting the Myths About Usage-Based Insurance

Usage-based insurance is a system of telecommunications and informatics (telematics) that can monitor your driving and save you money on your auto insurance if you use good driving habits.

At Farm Bureau, we offer our clients the option to use a safe driving program called Driveology. It uses an app and a windshield tag to monitor how fast you drive, how hard you brake and whether you use your phone while driving.

Just signing up for Driveology saves you 10% on your auto insurance, but you might be hesitant if you’ve heard myths about usage-based insurance. Get the truth here so you can decide if usage-based car insurance is right for you.

Myth: You Have to Be a Good Driver to Qualify for Discounts

Fact: You don’t need to be a great driver or an experienced driver to get benefits. Using a program that monitors your speed, braking and phone use can help you be more aware of your driving habits, so you can improve them. And if you’re a parent, usage-based insurance can show you your teen driver’s habits, so you can help them learn to drive more safely.

Myth: Speeding or Braking Hard to Avoid an Accident Lowers Your Score

Fact: The program tracks trends, not occasional times when you speed or hit the brakes. You get a rolling two-week score that reflects your driving habits. 

So, if you speed up because a car behind you is approaching dangerously quickly, or you slam on the brakes to avoid a car that runs a red light, it shouldn’t impact your score. However, you want to avoid being a driver who’s routinely heavy on the accelerator and the brakes.

Myth: Bad Driving Habits Will Raise Auto Insurance Rates

Fact: With Driveology, you can only save money compared to what you’re already paying for car insurance. You don’t get charged more for bad driving habits; you just lose out on the opportunity to save based on good habits.

Myth: With Systems That Monitor Driving, You Give Up Privacy

Fact: With Driveology, your personal information is secure. While the program can monitor cell phone use, it only senses activity. It can’t access your phone calls, messages, browser history or personal information. And the information that is collected is just used for underwriting. It can only be used for processing claims with your consent. 

Myth: The Technology Is Hard to Use

Fact: Usage-based insurance is designed to be easy to understand and operate. If you have any questions about the Driveology windshield tag or app, you can reach out to your Farm Bureau insurance agent.

Myth: The System Can’t Track Different Drivers Who Use the Same Car

Fact: Every driver in your household can download the app to their own phone and monitor their driving habits on any vehicle that’s enrolled in Driveology on your policy.

Find More Ways to Save on Your Auto Insurance

Usage-based car insurance is a great way to save money on your auto insurance policy. Other options, like taking a defensive driving course may also lower your rates.

Reach out to your Farm Bureau agent to review your auto insurance policy and see what other opportunities to save might apply to you.