Behavior- versus usage-based car insurance

When you add up monthly car payments, the price of fuel and routine maintenance costs, it's easy to see why driving a vehicle can get quite expensive. To help drivers curb costs, USAA offers two unique discount programs.‍ ‍ ^{See note 1}

The first program, USAA SafePilot®, monitors driving habits and then provides discounts on the USAA Auto Insurance policy for safe driving behaviors. This type of program is known as behavior-based car insurance, or BBI.

The second option, a usage-based program, is for those who drive little or infrequently. Usage-based insurance or UBI programs help reward you for lower mileage driving and other factors.

Read on to learn how you can take advantage of these safe driving discounts.

What is behavior-based insurance?

With BBI programs, the better you drive — and the quicker you improve those less-than-perfect habits — the better your discount can be. USAA SafePilot® uses a variety of datapoints to monitor your driving habits:

• Date and time: The days of the week and time of the day or night you drive.
• Miles: The distance you travel per trip in your vehicle, as either a driver or passenger.
• Speed: How fast or slow you drive and how you navigate varying speed limits.
• Braking habits: How often you brake in both high traffic and solitary driving conditions.
• Phone calls: How often you make and receive calls while driving.
• Vehicle navigation: How you control your vehicle while taking corners.

USAA SafePilot® works by using GPS and other sensors to gather data. Data collected by SafePilot® is kept strictly confidential and meant to monitor risk over time, not to penalize drivers harshly if, for example, you accidentally run a red light.

How does BBI work?

BBI programs like SafePilot® work by rewarding you for establishing a long-term pattern of safe driving habits like keeping your hands off your phone while driving and leaving enough distance between yourself and the cars in front of you. Over time your driving behaviors are analyzed and potentially rewarded with discounts on your auto insurance premiums.

USAA members can save up to 10% at enrollment in the program and up to 30% at policy renewal for driving safely. And unless you're in an accident, BBI rates through the SafePilot® program are adjusted during your policy renewal period.

Advantages of BBI

One of the main advantages of USAA SafePilot® is that if you're a safe driver, you can save on your auto insurance policy — and that's in addition to other cost-cutting options, like bundling your home and auto insurance.‍ ‍ ^{See note 2}

Another benefit is that if you have a newly licensed high school or college-age student insured on your auto insurance policy, SafePilot® gives them an added incentive to drive carefully, too.

Who's USAA SafePilot® best suited to?

Only USAA members with an active USAA Auto policy can qualify for the SafePilot program. It's best suited to confident drivers with a history of safe, accident-free driving who are looking to save money on their auto insurance policy.

What is usage-based insurance?

Another option designed to save drivers money is usage-based insurance, or UBI, program. These programs are also known as per mile insurance or car insurance by the mile where rates are determined by how often you drive. USAA offers a usage-based program that offers savings for lower mileage and safe driving.

How does UBI work?

UBI programs typically require a mobile device app that utilizes telematics technology to track driving habits.  Policyholders typically pay a flat rate along with an additional premium that increases based on a pre-negotiated set of mileage parameters. The rates for this car insurance premium can be adjusted depending on how much or little you drive each year.

Advantages of USAA’s usage-based program

Our pay as you drive program rewards occasional drivers with discounted premiums compared to those who use their car every day. The program is also designed to encourage those who rarely drive to focus on safe driving every time they get behind the wheel.

Who's USAA's usage-based program best suited to?

Usage-based insurance is a great opportunity for:

• Seniors who only drive occasionally to see family, friends or medical specialists.
• Urban residents who live in the city and only need to drive when other options like public transportation aren't available.
• Students who spend part of the year on campus and only drive when they're at home in between semesters.
• Multiple vehicle owners who drive a more expensive car during the summer months and a less expensive car during the winter months.
• Seasonal workers who live part of the year at sea or abroad, or who work in a similar capacity where they go long periods without driving.
• Drivers with a history of accidents who may choose to drive less to avoid the high fees associated with a full-time driver policy.

BBI versus UBI

Determining which program is best for you is a personal choice. For those who drive frequently, BBI can provide discounted auto insurance rates for safe, responsible driving. UBI offers affordable auto insurance rates for safe, responsible drivers who only drive occasionally.

For help determining which program to participate in, talk to your USAA representative.