66 Painters Mill Road Suite 110 Owings Mills, MD
How Usage Based Auto Insurance Can Save You Money


For Maryland residents that own a car, you must also have auto insurance to comply with the rules of the state. While there isn’t much you can do to get around paying those monthly premiums; there may be ways in which you can lower the rate. Many auto insurance companies are now offering discounts to drivers who choose to use in-vehicle telecommunications devices known as telematics.

What is Usage-Based Insurance?

Traditionally auto insurance rates have been based on your home zip code, the car you drive, your gender, and loss history. However, UBI insurance companies utilize individual and current driving habits based on data received from in-car devices. Instead of relying on driving records based on past trends and events or aggregated statistics, they use real-time data making premium pricing more individualized and exact. 

A relatively new innovation by auto insurers, usage-based insurance aligns auto insurance rates with actual driving habits. Car manufacturers can integrate these into original equipment or individuals can self-install them into a customized vehicle port. Some carriers are even taking it one step further and using an app on your phone to track your driving.

Once installed, telematics traces driving behaviors such as distance, and time of day the vehicle is driven. It also uses GPS to track where the car is driven to, hard braking, rapid acceleration, hard cornering, and airbag deployment. The insurance company then uses the collected data to determine the appropriate auto rates. And not to worry, after a few months of data collection, you will start to see the discounts.

Let’s look at an example. A driver who travels many miles a day at a high rate of speed may pay higher rates than someone going a few miles a day at a lower rate of speed. You may want to consider a telematics device if you have a young driver that travels a few miles a day to save money on your monthly auto insurance rates. 

Ways to Save Money with Usage-Based Insurance

Drivers who save the most money on their insurance followed these safety-minded rules.

  • No late-night driving.
  • Dodge peak commuting hours.
  • Drive as little as possible.
  • Stay under 80, keeping it under 80 is the key to savings.
  • Try to take it easy on the brake pedal, no hard stopping.
  • Avoid stop-and-go traffic.

You may not always be able to avoid the above situations, but the more often you can, the more money you will save. 

The Takeaway

If you are looking for savings on your auto insurance and consider yourself a driver who follows the rules of the road, usage-based insurance may be the answer for you to start saving money on your Maryland auto insurance rates. 

At Woodhome Insurance, we want to provide the protection you and your family need at a price that aligns with your financial goals. If you are in the Owings Mills area, give our insurance professionals a call today to start a usage-based insurance policy for you and your family. We acknowledge that not all policies are equal. We want to help you find the one that best fits your unique situation. Our insurance experts are ready to answer any questions you may have for us.

Woodhome Insurance
Home – Auto -Business
(410) 580-2800
#businessinsurance #MarylandInsurance


Earn a discount on your Auto Insurance - Get Up To 15 Quotes In 15 Minutes!