Nationwide SmartRide Review

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Car insurance companies personalize your premium based on your individual rating factors, like your age, driving history, the type of car you drive and the coverages you choose. But where rates have long been personalized, discounts have remained fairly static. Most companies give discounts for specific circumstances, like insuring a good student, having vehicle safety features or choosing paperless billing.

Increasingly, insurance companies are developing usage-based discount programs, which offer savings based on your personal driving habits. Nationwide SmartRide is one such program. SmartRide tracks your driving history and habits via a mobile app or plug-in device. You get a 10% discount just for signing up; after the program ends, you may earn a discount of up to 40% based on your driving. Along the way, you will get feedback and tips to improve your driving, which might help you earn the highest discount possible.

What is Nationwide SmartRide?

Nationwide SmartRide is a program that rewards drivers for good habits with discounts on their auto insurance premiums. SmartRide is optional, but most policyholders should have the option to sign up. Nationwide advises that the smartphone app is the best way to participate in the program, but if you prefer, you may have the option to have a plug-in device mailed to you.

However, if your car was manufactured before 1996, you may not be eligible. Nationwide SmartRide is entirely free, and, unlike other telematics programs, there is no risk of your premium going up if your driving habits do not qualify for a discount. You may lose your 10% participation discount at the end of the policy term, but you will not see a surcharge put on your policy.

Once you sign up, your driving habits will be monitored for four to six months. Throughout the driving period, you will get regular updates from Nationwide. These updates will include your current estimated discount and suggestions for ways to improve your driving habits, which could increase your discount. Once the initial period has been completed, you will be advised that you can delete the app or return the device in the prepaid envelope provided.

What does SmartRide monitor?

SmartRide monitors five aspects of your driving behavior that are commonly associated with your overall risk of getting in an accident. These include:

  • Miles driven: The more miles you drive, the higher your chances of being involved in a crash, because you are on the road more often. Driving shorter distances or fewer overall miles may help you earn a larger discount.
  • Hard braking: Slamming on the brakes increases the chance of an accident, so too much of this behavior will negatively affect your SmartRide discount.
  • Fast acceleration: If you regularly accelerate quickly, this could be a sign of aggressive driving. SmartRide considers any change of speed in excess of 7.7 mph per second as a poor driving habit.
  • Nighttime driving: Trips that occur between midnight and 5:00 AM have the highest chance of resulting in an accident. If your car is usually parked during these hours, you might get a larger discount.
  • Idle time: The time your car spends idling could indicate how heavy traffic is in your area. In heavily congested areas, you may be more likely to spend more time stopped at lights or stuck in traffic. And in general, the heavier the traffic, the higher the likelihood of an accident.

Each week, you will get reports from Nationwide with a breakdown of each of these factors. You will know exactly how far you drove, how many times you braked or accelerated too quickly, how much time you spent driving at night and how long you idled. These reports could help you make changes to your driving behavior that might increase the chances of you getting a larger discount.

How much can you save with Nationwide SmartRide?

The car insurance discount you will earn for participating in Nationwide SmartRide will vary based on your driving habits. You will get an instant 10% discount just for signing up, and depending on the overall data gathered during the evaluation period, you might get a discount up to 40%. However, this 40% is not off your total premium; only some coverages are eligible to receive the discount, including liability, medical payments and collision coverage. Your final discount is not applied to your policy right away; it will be applied at your next policy renewal.

Nationwide will never use the information gathered to raise your premiums, which is a potential risk with some similar programs from competitors. However, if your driving habits do not qualify for a discount, you will likely lose your 10% participation discount at your next policy renewal.

Who should sign up for SmartRide?

Most Nationwide policyholders can participate in SmartRide, but certain participants have a better chance of benefitting. Drivers whose premiums are high due to circumstances out of their control — such as age or location — may be able to use SmartRide as an opportunity to show Nationwide that they drive safely. If you drive low annual miles, avoid driving at night, rarely idle and avoid rapid acceleration or braking, SmartRide might be a great choice.

Those who have been in an accident in the past and had their premiums raised because of the claim might benefit from SmartRide if they have worked to improve their driving habits. Since SmartRide is free and cannot result in your premiums going up (with the exception of losing your participation discount), you may want to give the program a try.

Nationwide does offer a second usage-based program called SmartMiles. If you work from home, are retired or drive low annual miles, the program could be a good fit. To participate, you must agree to pay your premium monthly, rather than in larger installments. Your monthly mileage will be monitored and your monthly premium will then be adjusted so that you pay for just the miles you drove.

Frequently asked questions

Does Nationwide SmartRide track my location?

No. Although the program does use GPS to track your braking and acceleration speed, SmartRide does not track your location or movements.

Does Nationwide Smartride track my speed?

Yes and no. The program does track speed — your weekly report will show what your average speed was — but it does not use it as a discount factor.

What happens if I unplug my device or forget to turn my phone’s location services on?

If you are using the Nationwide SmartRide plug-in device, you can unplug it a few times each month with no repercussions. You might choose to do this if someone is going to borrow your car, for example. If you are using the app and forget to turn your smartphone’s location services on, the app will not be able to track your driving. Just like with the plug-in device, this is not generally a problem a few times a month. However, if you repeatedly unplug your device or forget to turn your location services on, you may lose your participation discount and will not earn a final discount.