Every figure in this article is traced to the primary sources listed under Sources.

Yes, auto insurance telematics can raise your rate. Many usage-based programs reserve the right to increase your premium at renewal if driving data shows risky behavior such as hard braking, rapid acceleration, late-night driving or high mileage. Some programs are discount-only and cannot raise your rate, but others are two-sided. Read the program terms before you enroll.

Key Findings

  • Outcome depends on program design. About 23.6% of telematics policyholders in Maryland saw their rates increase at renewal because of their telematics score, according to the Maryland Insurance Administration’s 2025 report on 2023 data.
  • Savings are real but modest. Consumer Reports’ 2024 survey of 40,566 policyholders put the median annual saving at $120, far below the “up to” percentages some programs advertise.
  • Program terms decide your risk. Discount-only programs cannot raise your rate; two-sided programs can. Ask which one you are joining and compare base prices before the discount is applied.

Navigate This Guide

Can Auto Insurance Telematics Raise My Rate?

Yes. In a two-sided telematics program, the insurer can raise your base rate at renewal if the driving data looks risky. In a discount-only program, the insurer can only lower your rate and cannot raise it based on telematics data. The answer is not “yes” or “no” for the whole market: it depends on which type of program you enroll in.

The practical consequence is that a telematics discount is not a guaranteed saving. It is a trade: you share driving data in exchange for a possible discount, and you accept the possibility that the data could work against you. Suppose a driver pays $1,200 a year and enrolls in a program that offers a 10% discount for safe driving. If the driver earns the full discount, the premium falls by $120, to $1,080. If the program is two-sided and the score is poor, the insurer could instead apply a 10% increase, raising the premium to $1,320. These numbers are hypothetical and for illustration only; they are not a quote or a prediction.

$120Median annual saving among telematics users (Consumer Reports 2024 survey of 40,566 policyholders)
23.6%Share of Maryland telematics policyholders whose rate rose at renewal in 2023 (Maryland Insurance Administration 2025 report)
5 yearsLength of FTC order barring GM and OnStar from sharing driving data with consumer reporting agencies (finalized January 2026)

If your premium rose for reasons unrelated to telematics, our guide to why car insurance goes up even with a clean record walks through other factors that can move your rate.

State rules also matter. Maryland’s legislature has examined a bill that would prohibit an insurer from increasing a private passenger auto premium based on telematics data at increments of less than six months from the policy’s effective date. As of this writing, that proposal had not been enacted. Your state insurance department can confirm what rules apply where you live.

Which Programs Can Raise Your Rate and Which Cannot?

The two program designs produce different risks. A two-sided program can lower or raise your rate at renewal based on your driving score. A discount-only program can only lower your rate. Before you enroll, ask the insurer which design its program uses, because the answer determines whether telematics can work against you.

Risk
Two-sided program can raise
Your renewal rate can move down or up based on your telematics score.
If the score looks risky, the insurer may reduce or eliminate the discount, and in some programs may apply a higher rate at renewal. Ask the insurer directly whether the program is two-sided before you enroll.
Protection
Discount-only program cannot raise
Your rate can go down with good driving, but telematics data cannot push it up.
A discount-only program gives you the upside of safe-driving savings without the downside of a rate increase tied to your score. Confirm the program type in writing before you enroll.

What can push your rate up

  • Hard braking triggers risk flags in most usage-based scoring models.
  • Rapid acceleration is tracked the same way and can lower your score.
  • Late-night driving is treated as higher risk by many programs.
  • High annual mileage can reduce or erase the discount.

What can pull your rate down

  • Gentle braking and steady speeds support a good driving score.
  • Daytime driving is treated as lower risk than late-night driving.
  • Low annual mileage can raise the size of the discount.
  • Consistency over the monitoring period matters more than a single good week.

Not sure a telematics program is worth your data?

Compare quotes for the same coverage limits and deductibles before you trade driving data for a discount.

GET YOUR CAR INSURANCE QUOTES

What Should Drivers Do Before Enrolling in Telematics?

Ask five questions before you enroll. The answers decide whether the program can help you or hurt you, and they are the same questions a state insurance department would tell you to ask.

Ask whether the program is discount-only or two-sided
This single answer decides whether telematics can raise your rate.
A discount-only program can only lower your rate. A two-sided program can do both. Get the answer in writing or in the program terms before you enroll.
Ask exactly what data is collected and how long it is kept
You are trading privacy for a possible discount.
Common data includes speed, braking, acceleration, cornering, location, time of day and mileage. Some programs also collect phone use while driving. Ask how long the data is kept and whether it is shared with third parties.
Compare the base price before the discount
A discount on a high base price can still leave you paying more.
If one insurer’s base price is much higher, a 20% telematics discount may still leave you paying more than a competitor’s base price. Compare quotes for identical coverage limits and deductibles.
Read the renewal and cancelation terms
The terms decide whether you can leave the program without penalty.
Confirm whether the insurer can change your base rate at renewal based on telematics data, and whether you can cancel the program without penalty. Enrollment is usually voluntary, although some insurers may offer lower base rates to drivers who participate.
If your rate rises after you enroll, ask why and compare again
A post-enrollment increase is a signal to re-shop.
Ask the insurer for the telematics score breakdown that drove the change, then compare quotes for the same coverage limits and deductibles at renewal. A higher rate at one insurer does not mean every insurer will price your telematics data the same way.

Beyond telematics, there are several verified ways to lower your auto insurance premium without sharing driving data.

Frequently Asked Questions About Telematics and Your Rate

Does enrolling in telematics always lower my car insurance?

No. Some programs are discount-only and can only lower your rate. Others are two-sided and can raise it at renewal if your driving data looks risky. The outcome depends on the insurer’s program design, not on telematics as a category.

What data do telematics programs collect?

Common data includes speed, braking, acceleration, cornering, location, time of day and mileage. Some programs also collect phone use while driving. Ask the insurer exactly what is collected, how long it is kept and whether it is shared with third parties.

The Bottom Line on Telematics and Your Rate

Telematics can raise your auto insurance rate if the program is two-sided and your driving data looks risky. It can also save you money if you drive safely and the program is discount-only or your score is good.

The difference is in the program terms. Ask whether the program can raise your rate, what data it collects and how it is used, and compare base prices before you trade your data for a discount.

How We Verified This

We reviewed the Federal Trade Commission’s final order in the GM/OnStar matter, finalized in January 2026, which bars General Motors and OnStar for five years from sharing drivers’ geolocation and driving behavior data with consumer reporting agencies and requires affirmative express consent and opt-out mechanisms. We also reviewed the Maryland Insurance Administration’s 2025 report, which covers 2023 data and shows that 23.6% of telematics policyholders saw a rate increase at renewal, and Maryland legislative records describing a proposal to limit telematics-based increases to no more than once every six months. The Consumer Reports median-savings figure of $120 comes from the organization’s 2024 survey of 40,566 policyholders, as cited by multiple secondary sources. Not every insurer’s program terms could be independently verified; the article describes common patterns rather than the terms of any specific policy. This article is general information, not legal or financial advice and not a personal quote. For complaints or official rules, contact your state insurance department.

Disclaimer: This article is for informational purposes only and is not professional insurance, legal or financial advice and not a personal quote. Rates, rules and deadlines vary by insurer, state and driver, and can change. Confirm details with a licensed agent, your insurer or your state department of insurance before making a coverage decision.

Sources

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