J.D. Power’s auto insurance ratings for usage-based insurance
Nationwide came out on top for usage-based insurance with 842, and Geico was a close second at 837. Conversely, Farmers scored the lowest at 796, with American Family scoring the second lowest at 800.
Nationwide offers two UBI programs: Smart Ride and SmartMiles. SmartRide is a traditional program that monitors driving habits for a discount, while SmartMiles is a pay-per-mile program. Geico offers only one program, DriveEasy, a traditional UBI program.
“Nationwide customers are most satisfied with their UBI auto insurance experiences (score of 842 out of 1,000), followed by Geico at 837 and Liberty Mutual at 830,” says Stephen Crewdson, senior director of global business intelligence – insurance at J.D. Power.
Below, you can compare the usage-based insurance companies ranked in the study on a scale of 1,000, with an industry average of 821.
Although USAA scored the highest at 843, it is ineligible for the official rankings because it only provides insurance to military members and their families. However, USAA may be a good option for those who are eligible.
How does J.D. Power evaluate usage-based insurance?
J.D. Power surveyed drivers participating in UBI programs from insurers with the most significant market share. The insurers included in the study had at least 100 completed UBI surveys. Usage-based programs were evaluated in five areas:
- Discounts for participation
- Functionality of mobile app/website
- Ease of participation
- Usefulness of information
- Initial program onboarding
“UBI programs are one way insurers are differentiating themselves in today’s tough price market, and many drivers find these programs to be a great way to save on their auto insurance premiums,” Crewdson says.
Why are J.D. Power’s usage-based insurance ratings valuable to consumers?
J.D. Power, an analytics company with a strong reputation, uses consumer data to offer valuable insights into the insurance industry.
Its usage-based insurance ratings are a powerful tool for drivers, allowing them to make informed decisions about insurers by providing a comprehensive view of UBI programs and their customer satisfaction across numerous criteria.
What are the types of usage-based insurance programs?
The most common type of usage-based insurance is a discount program. Many major insurers offer a car insurance discount if you participate in their telematics program, which uses a device or app to monitor driving habits such as speed, hard braking, and mileage. Drivers who don’t drive far and exhibit safe driving skills earn a discount.
The other type of usage-based car insurance is pay per mile. In this type of insurance, the driver pays a monthly base fee and then a charge for every mile driven. Coverage is typically the same as with a standard policy, but drivers spend less if they don’t drive much.
Most insurers offer a usage-based discount; however, only a few offer pay-per-mile coverage. Nationwide is the only company in the study that offers both.
How to choose a usage-based insurance program
Usage-based insurance uses telematics to monitor driving behaviors, such as mileage, hard braking, speed, and phone usage while driving.
Usage-based insurance is an excellent option for low-mileage drivers with safe driving skills. However, it isn't suitable for everyone since some insurers raise rates if you display risky driving habits.
Since many insurers offer a UBI option, it's essential to shop around to find the best fit for you. Each insurer offers different discounts and monitors different driving habits. Finding a program that won’t penalize you if you don't score well.
Source
J.D. Power. “2024 U.S. Auto Insurance Study.” Accessed November 2024
FAQ
Which usage-based insurance companies rank the highest in overall customer satisfaction?
According to J.D. Power’s 2024 U.S. Auto Insurance Study, Nationwide and Geico ranked the highest among usage-based insurance companies. Farmers and American Family ranked the lowest for customer satisfaction.
Why should I trust J.D. Power?
J.D. Power, a trusted leader in analytics with over 55 years of experience, provides consumer data and insights. Its reputation for reliability helps consumers make informed decisions.
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