Can I Install Telematics to Get a Car Insurance Discount?

Last Updated on September 28, 2026 by James Shaffer

Telematics, also called usage-based insurance (UBI), lets an insurer use driving data to help determine a discount or other premium adjustment. In New York, some insurers offer telematics programs that track factors such as mileage, braking, acceleration, time of day, speed, or phone use. These programs can be one option for saving money on your car insurance, but the rules and potential savings vary significantly by insurer.

Telematics discounts are optional insurer programs in New York, not a discount that every insurer is required to offer. The New York State Department of Financial Services (DFS) recommends checking directly with your insurer or agent to find out whether a program is available and how it affects your premium.

How Does Telematics Work?

Most modern telematics programs use a smartphone app, although some programs also use a plug-in device, Bluetooth beacon, or data supplied by a connected vehicle. Your insurer collects specified driving information while you participate and uses it according to the rules of its program.

The exact process differs among car insurance companies. Some programs continuously update your driving feedback, while others monitor you for a set period and calculate a discount at renewal. Some insurers display a driving score, but there is no universal 100-point scoring system used by every telematics program.

Your telematics results also should not be confused with a traditional good driver discount. A traditional discount may be based primarily on your accident or violation history, while a telematics program can evaluate day-to-day driving data collected from an app or device.

What Does a Telematics Program Track?

According to New York DFS, telematics programs may use information such as miles driven, time of day, acceleration and braking patterns, and GPS location. Individual insurers may consider additional factors. Common examples include:

• Hard braking and acceleration. Programs may record sudden braking or rapid acceleration. An occasional hard stop may be unavoidable, but repeated events can affect your results under programs that use these factors.
• Speed. Some programs evaluate speeding or driving speed as part of their calculation.
• Phone use. Smartphone-based programs may detect certain types of phone activity while a trip is being recorded. Exactly how phone use affects the result varies by insurer and state.
• Mileage. Some insurers consider how much you drive. Drivers who put relatively few miles on their vehicles may also want to compare a telematics program with a traditional low-mileage discount.
• Time of day. Certain programs consider when trips occur, including whether you frequently drive during higher-risk hours.
• Cornering or other driving movements. Some programs use smartphone sensors or connected-vehicle data to identify additional driving behaviors.

Not every insurer tracks every item on this list. Review the program’s current terms and privacy disclosures before enrolling so you understand what information will be collected and how it can be used.

How Much Can You Save With Telematics in New York?

There is no dependable statewide dollar amount that represents what the average New York driver will save with telematics. Discounts depend on the insurer, program, policy, eligible coverages, and the driving data collected.

For example, State Farm currently advertises its Drive Safe & Save program as offering savings of up to 30% in New York. Liberty Mutual also advertises potential RightTrack savings of up to 30% on its New York auto insurance page. These are maximum advertised savings, not estimates of what a particular driver will receive, and program rules can change.

Be cautious with national telematics savings figures. A national average or advertised enrollment discount may not apply in New York. Progressive, for example, states that its standard Snapshot participation discount is not available in New York.

Can Telematics Increase Your Car Insurance Rate?

It depends on the program. Avoid assuming that all telematics programs are “discount only.” Some insurers use driving data to determine a personalized rate or premium adjustment at renewal, while others limit the effect of poor results.

Progressive’s current Snapshot terms specifically state that a Snapshot surcharge is not applied to New York customers. GEICO, however, states that DriveEasy premium rates generally vary based on participation and the driving habits recorded by the app. Allstate also states generally that high-risk driving can increase a driver’s rate through Drivewise. The rules that apply to your particular New York policy and underwriting company should be confirmed before you enroll.

Even when telematics itself does not add a surcharge, your total premium can still change for unrelated reasons at renewal. Claims, policy changes, statewide or territorial rate changes, vehicle changes, and other rating factors can all affect what you pay. Learn more about the reasons for an increase in insurance rates.

Which Companies Offer Telematics in New York?

New York DFS maintains a comparison of discounts offered by major auto insurers. Its current list shows telematics or usage-based insurance discounts available through a number of underwriting companies, including certain GEICO, Progressive, State Farm, Allstate, Liberty Mutual, and Nationwide companies.

Availability can depend on the specific company that underwrites your policy, not just the brand name on your insurance card. That distinction is especially important because multiple insurers within the same insurance group can have different programs or eligibility rules.

Insurer	Program	New York Detail
Progressive	Snapshot	Progressive says the standard participation discount and Snapshot surcharge do not apply in New York. New York participants are subject to special monitoring and re-monitoring rules.
GEICO	DriveEasy	Available in New York. GEICO says driving scores older than three years cannot be used in New York and requires periodic re-monitoring.
State Farm	Drive Safe & Save	State Farm advertises savings of up to 30% in New York. The program uses the State Farm app and a Bluetooth beacon.
Allstate	Drivewise	DFS lists telematics availability for certain Allstate underwriting companies. See our Allstate car insurance review for New York for more information about the insurer.

Program names, discounts, eligibility, and rating rules can change. Confirm the current terms with the insurer before making a purchasing decision.

Why Do Insurance Companies Use Telematics?

Traditional auto insurance pricing relies on rating factors that estimate a driver’s risk. Telematics gives an insurer additional information about how or how much a participating vehicle is actually driven. Insurers can use approved telematics programs to offer pricing or discounts that reflect those driving characteristics more directly.

Telematics can also give drivers feedback about behaviors such as braking, speeding, or distracted driving. Safer driving can help reduce the likelihood of an accident and the need to file an insurance claim after a crash.

Is a Telematics Program Worth It?

Telematics may be worth considering if you are comfortable sharing driving data and believe your driving habits fit the program’s rating criteria. It can be particularly appealing when you drive relatively few miles, avoid phone use behind the wheel, and generally accelerate and brake smoothly.

However, compare the possible savings with the program’s privacy terms and potential effect on your renewal premium. A telematics discount also does not replace the other factors an insurer may use to determine your price. Your driving record can still affect your car insurance rates, for example. If an insurer uses credit information in underwriting or rating, New York also has specific consumer protections governing that information; see our guide to getting car insurance with poor credit.

Before enrolling, compare the telematics rules alongside the insurer’s overall premium. A large percentage discount does not necessarily make one insurer cheaper than another if its starting rate is higher.

FAQs on Telematics Car Insurance in New York