According to Forbes, Progressive started offering their telematics program back in 1998, and one-third of overall customers opt-in to participate and of that one-third, two-thirds receive savings. Allstate also offers a program called Drivewise, Esurance offers Drivesense and State Farm offers Drive Safe & Save, to name a few.

Currently, all of the usage-based insurance programs only reward you for your good driving with savings; however, in the future, it is expected that users will also get penalized for poor driving. Essentially, If you typically drive well above the speed limit, take risks on the road or drive erratically, telematics is not the best option for you because you won’t receive any savings for your driving behavior. It’s important to note that telematics is currently not offered in Alaska, California, Hawaii, Indiana and North Carolina.