Car insurance providers customize your premium based upon your individual rating factors like your driving record, age, and type of car. Discounts have remained relatively static in areas where rates are personalized. Many companies offer discounts for certain circumstances such as student insurance, vehicle safety features, or paperless billing.
Insurance companies are increasingly developing usage-based discount plans that offer savings based upon your driving habits. Nationwide SmartRide, is an example of such a program. SmartRide monitors your driving habits and history via a plug-in or mobile app. Sign up and receive a 10% discount. After the program is over, you could earn up to 40% off based on your driving habits. You will receive feedback and tips that can help you improve your driving skills, which could lead to you getting the best discount.
What is Nationwide SmartRide and how can you get it?
Nationwide SmartRide rewards drivers with discounts on auto insurance premiums for their good driving habits. SmartRide is an optional program, but policyholders should be able to sign up. Nationwide recommends that you use the app on your smartphone to take part in the program. However, if you prefer to have a plugging device sent to you, it is possible.
You may not be eligible if your vehicle was built before 1996. Nationwide SmartRide, unlike other telematics programs is completely free. Your premium will not go up if you drive differently than the criteria for a discount. Your 10% participation discount may be lost at the end, but there will not be a surcharge added to your policy.
Your driving habits will be closely monitored from the moment you sign up for Nationwide. This can last anywhere from four to six months. Nationwide will provide regular updates throughout the driving period. These updates will contain your estimated discount as well as suggestions on how to improve your driving habits. This could help increase your discount. After the initial period is over, you will be notified that the app can be deleted or returned in the enclosed prepaid envelope.
What is SmartRide?
SmartRide tracks five factors that can be associated with your risk of being in an accident. These are:
- Driving distance: Your chances of getting into a crash are higher if you drive more. You may be able to get a bigger discount if you drive shorter distances or cover fewer miles.
- Hard braking: Using your brakes hard increases the likelihood of an accident. This behavior can negatively impact your SmartRide discount.
- Rapid acceleration: This could indicate aggressive driving. SmartRide considers any speed increase of more than 7.7 mph per sec as poor driving habits.
- Night driving: The highest likelihood of an accident is for trips that take place between midnight and 5:00 am. You might be eligible for a bigger discount if your car is parked at these times.
- Idle time: How much traffic your area has could be reflected in the time your car is idling. You may spend more time stuck in traffic or at the lights in heavily congested areas. The likelihood of an accident is higher for heavy traffic.
Nationwide will send you weekly reports with detailed breakdowns of each factor. Nationwide will provide detailed reports detailing how far you drove, whether you slowed down or accelerated too fast, how much time spent driving at night, and how much you sat idle. These reports can help you to make improvements in your driving habits that could increase your chances of getting a bigger discount.
What can you save on Nationwide SmartRide
Your driving habits will affect the car insurance discount that you receive for participating in Nationwide SmartRide. Signing up will give you a 10% instant discount and, depending on how much data is collected during the evaluation period, it could be up to 40%. This 40% discount does not apply to your total premium. Only certain coverages are eligible for the discount. The final discount will not be applied to your policy immediately; it will be applied when you renew your policy.
Nationwide will not use any information to increase your premiums. This is possible with similar programs offered by competitors. If your driving habits are not eligible for a discount, your 10% participation discount will be lost at your next policy renewal.
SmartRide: Who should sign up?
SmartRide is open to all Nationwide policyholders. However, certain participants may have greater chances of benefitting. SmartRide may be an option for drivers whose premiums are high because of circumstances beyond their control, such as age and location. This will allow them to demonstrate to Nationwide that they drive safely. SmartRide may be a good choice if you have low annual mileage, drive at night, are rarely idle, and avoid rapid acceleration/braking.
SmartRide may be a benefit to those who have had their premiums increased because of an accident. SmartRide is completely free and will not increase your premiums (except for losing your participation discount). You might want to give it a shot.
SmartMiles is a second program offered by Nationwide. It’s based on usage. The program is suitable for those who work remotely, retire early, or have low annual mileage. You must agree to pay your premium monthly instead of in large installments. Your monthly mileage will also be tracked and your monthly premium adjusted to pay only for the actual miles driven.
Questions frequently asked
Is Nationwide SmartRide able to track my location?
No. SmartRide uses GPS to track your acceleration and braking speed. However, SmartRide doesn’t track your movements or location.
Is Nationwide Smartride able to track my speed?
Yes, and no. Yes and no. The program tracks speed, so your weekly report will show your average speed. However, it doesn’t use that as a discount factor.
What happens if my device is unplugged or my location services are not turned on?
You can unplug the Nationwide SmartRide plug in device a few times per month without any repercussions if you’re using it. This is a good option if you are going to lend your car to someone else. The app won’t be able track your driving if you forget to turn on your location services. This is similar to the problem with the plug-in device. It’s usually only a problem once a month. If you forget to turn on your location services or unplug your device frequently, you could lose your participation discount.