Drivewise Allstate: A Comprehensive Guide to Usage-Based Auto Insurance

Discover Allstate’s Drivewise program, a usage-based auto insurance

In recent years, insurance companies have adopted new, technology-driven ways to offer more personalized, fair pricing. Allstate’s Drivewise is one such innovation that allows drivers to benefit from safer driving habits by offering discounts based on their actual driving behavior. As part of the trend of usage-based insurance (UBI), Drivewise uses a smartphone app or a device to track your driving and reward you with discounts for safe driving.

In this guide, we will explore how the Drivewise program works, its benefits, and how it can help you save money while encouraging safer driving practices.

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What is Drivewise by Allstate?

Drivewise is a program offered by Allstate that uses telematics to monitor your driving behavior and provide personalized feedback, with the potential for discounts based on your driving habits. Essentially, it’s a form of usage-based insurance (UBI), which means your premiums are influenced by how you drive, rather than traditional factors like age, location, or vehicle type.

Allstate collects data through either a mobile app or a device installed in your car, tracking key behaviors such as:

• Speeding: How fast you drive compared to speed limits.
• Braking: The frequency and severity of hard braking.
• Mileage: The number of miles you drive.
• Time of Day: The time you’re on the road (e.g., driving late at night may influence discounts).
• Acceleration: How quickly you accelerate or how aggressively you drive.

Based on the collected data, Allstate offers discounts for safe drivers, helping you lower your insurance premium. The better your driving, the more you save.

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How Does Drivewise Work?

Drivewise works through either the Drivewise app (for smartphones) or an OBD-II device (plugged into your car’s port). The system tracks your driving behavior, providing both insights into your habits and potential savings. Here’s a step-by-step overview of how it works:

1. Sign Up for Drivewise:
   If you’re an Allstate customer, you can sign up for the Drivewise program. Allstate may offer it as part of your existing auto insurance plan or as an add-on feature.
2. Track Your Driving:
   Once enrolled, you’ll either download the Drivewise app to your smartphone or have an OBD-II device installed in your vehicle. The app or device tracks your driving behavior, including speed, braking, and the amount of time you spend driving.
3. Earn Discounts Based on Safe Driving:
   As you drive safely, you’ll accumulate reward points. The safer your driving habits, the higher your discount will be. For example, if you avoid hard braking, maintain a safe speed, and drive during less risky hours, your discounts will grow.
4. Review Your Driving Report:
   The Drivewise app or device will also provide a detailed report that gives you feedback on your driving habits. This allows you to see where you can improve and take steps to increase your savings.
5. Save on Your Premiums:
   Based on your driving habits, Allstate will adjust your premiums, offering discounts for good driving. If you continue to exhibit safe driving behaviors, you’ll likely see your rates decrease over time.

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Benefits of Allstate’s Drivewise Program

Drivewise offers several advantages, both in terms of saving money and encouraging safer driving. Here are the primary benefits:

1. Save Money on Insurance

The most immediate benefit of Drivewise is the potential for discounts on your car insurance premiums. Safe drivers are rewarded with lower rates, which can help reduce the cost of your insurance, making it more affordable over time.

2. Promote Safer Driving Habits

By tracking your driving behavior, Drivewise provides insights into areas where you can improve, such as reducing hard braking or speeding. Over time, these small changes can lead to safer driving habits, potentially preventing accidents and improving overall safety.

3. Reward for Safe Driving

Unlike traditional insurance policies, which don’t always account for your individual driving behavior, Drivewise gives you direct rewards for driving safely. This system fosters a culture of accountability, where your actions directly impact your premium.

4. Flexibility with the App and Device

Drivewise offers two methods of monitoring: the smartphone app or an OBD-II device. This flexibility allows you to choose the method that best suits your lifestyle and preferences. The app is convenient for drivers who prefer to use their phones, while the OBD-II device is ideal for those who want to have a more direct connection with their vehicle’s data.

5. No Long-Term Commitment

Once you enroll in Drivewise, you can opt out at any time. If you no longer wish to participate in the program, you can discontinue it without facing penalties or long-term commitments. However, keep in mind that opting out means losing any applicable discounts.

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How Much Can You Save with Drivewise?

The savings from Drivewise vary based on how safely you drive. On average, safe drivers can expect to save up to 30% on their car insurance premiums. The exact amount depends on factors such as:

• The amount of safe driving data you accumulate.
• The level of risk associated with your driving (e.g., speeding or sudden braking).
• The duration of your participation in the program.

For example, someone who drives cautiously, avoids hard braking, and limits late-night driving might qualify for significant discounts.

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Eligibility for Drivewise

Drivewise is available to most Allstate customers, but there are some eligibility requirements to keep in mind:

• You must be an Allstate customer:
  You need to have an active Allstate auto insurance policy to participate in Drivewise.
• You must have a compatible smartphone or vehicle:
  If you’re using the app, your smartphone must meet the system requirements. If you’re using the OBD-II device, your car must have a compatible port.
• Age and Location Restrictions:
  While Drivewise is generally available across the U.S., the program may have specific restrictions based on your state or age. Be sure to confirm eligibility with your Allstate representative.

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Is Drivewise Right for You?

Drivewise is ideal for drivers who:

• Are safe drivers and want to be rewarded for their driving habits.
• Want to lower their insurance premiums based on their driving behavior, not just demographic factors.
• Have a smartphone or a compatible car for easy tracking.
• Don’t mind being monitored in exchange for discounts.

If you’re not a particularly cautious driver or tend to drive aggressively, Drivewise may not offer substantial savings. It’s designed to benefit those who exhibit good driving habits, so if you’re looking to change your driving patterns, this program could provide both savings and motivation.

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Conclusion

Drivewise by Allstate is an excellent program for those looking to save money on auto insurance while promoting safer driving habits. By tracking your driving and rewarding good behavior, it creates an opportunity to lower your premiums over time. With both app and device options, it offers flexibility for all types of drivers.

If you’re already an Allstate customer and want to explore more personalized, usage-based options, Drivewise is worth considering. It not only helps you save money but also encourages you to drive more responsibly, benefiting both your wallet and your safety.

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FAQs

1. How do I sign up for Drivewise?
You can sign up for Drivewise through your Allstate account or by contacting your Allstate representative. Once enrolled, you can either download the Drivewise app or request the OBD-II device.

2. Will my driving be monitored constantly?
Drivewise monitors your driving behavior during the trips you take, including speed, braking, and acceleration. You are not continuously monitored 24/7 but rather based on your driving patterns.

3. Can I cancel Drivewise if I no longer want to participate?
Yes, you can cancel your participation in Drivewise at any time without penalty. However, this will result in the loss of any associated discounts.

4. Is Drivewise available in all states?
Drivewise is generally available across the U.S., but some states may have restrictions or specific guidelines. Contact Allstate to verify availability in your state.

5. How can I increase my savings with Drivewise?
To maximize your savings, focus on safe driving habits such as maintaining a consistent speed, avoiding hard braking, and driving during safer times of the day.