Consumer Reports, drawing on a 2024 survey of 40,566 policyholders, put the median annual savings among telematics users at $120. Telematics programs track how you drive, through a phone app, a plug-in device or the car itself, and insurers use the data to help set what you pay.
The real discounts
Maximum possible discounts run far above what most users get. A Consumer Federation of America analysis cited by Consumer Reports in 2025 found caps as high as 40% at Allstate and Nationwide and 15% at Farmers.
As previously noted, the median user in Consumer Reports’ survey saved $120. By age, the median was $115 for drivers 60 to 69 and $93 for drivers 70 and older, compared with $145 for drivers under 45.
Consumer Reports also says some insurers raise rates based on the data rather than only withholding a discount. A privacy lawyer it quoted recommends asking whether a rate can rise if the program flags risky behavior, and what is collected, including location and route information.
Where driving data can end up
On Jan. 14, 2026, the Federal Trade Commission finalized an order that bars General Motors and OnStar for five years from sharing drivers’ geolocation and driving behavior data with consumer reporting agencies.
The FTC said GM collected location data as often as every three seconds for some users and sold information on hard braking, late-night driving and speeding to agencies that compiled it into reports insurers used to deny coverage or set rates.
That case involved a carmaker’s own data collection, not an insurer’s discount program. It does show how driving data can travel once it leaves the car.
In an Insurify survey of 3,002 drivers published in November 2025, about one-third said they would share driving and location data in exchange for $1,000 in annual insurance savings.
Shop the base price first
A telematics discount applies to whatever price you start with. Suppose a policy costs $2,400 a year and the best comparable quote is $1,800. A 20% telematics discount brings the first policy to $1,920, still $120 above the cheaper one.
Compare quotes for identical coverage first, then ask each insurer what its program tracks and whether your rate can rise.
If you are still paying renewal rates on your car insurance, you are probably throwing away money. Shopping around may feel inconvenient, but Insurify has fixed that.
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