Allstate adds four states to usage-based insurance program

John Egan

Motorists in four more states – Colorado, Michigan, New Jersey and New York – now can enroll in Allstate’s Drive Wise program, which tracks drivers’ behavior and offers potential discounts on auto insurance.

The pay-as-you-drive program already was available to Allstate customers in Arizona, Illinois and Ohio. Three more states are supposed to be added in mid-November, but Allstate isn’t able to disclose the names of those states. Even more states are supposed to be added in 2013, company spokesman Justin Herndon says.

Allstate’s usage-based insurance program measures things such as mileage, braking, speed, and time of day when a customer is driving. A driver’s behavior is monitored through a device that plugs into a car’s data port.

Using the collected data, Allstate calculates an auto insurance discount for each customer who participates. Among drivers who’ve received discounts, the average discount is nearly 14 percent per car.

Allstate says these are the types of drivers who are most likely to score discounts in the Drive Wise program:

  • Those who average about 35 to 40 miles a day or less behind the wheel.
  • Those who stay below 80 miles per hour.
  • Those who avoid driving from 11 p.m. to 4 a.m.
  • Those who avoid braking suddenly.

Other car insurers that offer usage-based programs include Liberty Mutual, Nationwide, Progressive, State Farm and The Hartford.

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