How Usage-Based Insurance Works: A Guide to Telematics Coverage in 2026

by COUNTRY Financial

Usage-based insurance looks at how you drive rather than relying only on static factors like your age or zip code. Programs vary in what they score and in how the results are used, so the details of each program matter.

This guide covers how driving behavior scoring works, what a telematics program scores and how COUNTRY Financial® DriverIQ calculates a discount.

What usage-based insurance actually measures

A telematics program collects driving behavior through a smartphone app or a plug-in device and turns it into a score. Which behaviors are scored and how the score is used vary by program.

According to the National Association of Insurance Commissioners (NAIC), usage-based insurance evaluates driving behavior collected through devices installed in a vehicle or through smartphones. Depending on the program, scored factors can include miles driven, time of day, phone usage while driving, hard braking, speeding, cornering and acceleration. COUNTRY Financial DriverIQ focuses on three behaviors: phone use, braking and speeding.

DriverIQ is a discount program. Enrolled drivers earn an automatic discount, and their driving performance helps determine the size of that discount at each renewal.

How COUNTRY Financial DriverIQ calculates a discount

Enrolling in DriverIQ earns an automatic discount, currently 10 percent¹. At each renewal, the discount is updated based on your driving performance, ranging up to 25 percent.

The DriverIQ app scores three behaviors:

• Phone usage while driving, including screen taps even when the phone is mounted

• Braking

• Speeding

Safer performance in each area may result in a higher discount. This discount applies to specific coverage portions of your premium (bodily injury, medical payments, property damage, comprehensive and collision) rather than as a flat discount on your entire bill.

Enrolling and staying enrolled

Enrollment starts with a conversation with your representative, whether you're already a COUNTRY Financial client or switching your coverage. A few app settings also affect how COUNTRY Financial DriverIQ works.

To get started:

1. Talk to your representative about adding DriverIQ to your policy.

2. You will receive a text with a link to download the DriverIQ app.

3. Log in with your mobile number and the PIN sent by text.

4. Accept the DriverIQ Terms & Conditions and enter your email.

5. Grant the permissions the app requests so it can run in the background.

The app needs Location Services set to "Always Allow" so it can detect a trip starting in the background. If that permission is switched off, trips may not be recorded, which could affect your discount. If the DriverIQ app incorrectly classifies a trip as driver or passenger, you have 30 days to review and make any necessary corrections.

Who may benefit from usage-based coverage

Drivers who brake smoothly, stay within posted limits and avoid phone use while driving may see higher discounts.

A few situations worth considering before enrolling:

• If you already drive cautiously and rarely use your phone in the car, a telematics program may reflect that.

• If your commute involves a lot of stop-and-go traffic, hard braking events may add up even if you're driving defensively.

• If multiple people drive the same car, it's a good idea to occasionally review your trips in the app to ensure each one is classified correctly.

None of this determines your discount in advance. It's a starting point for deciding whether the scoring involved fits your specific driving pattern.

Deciding if telematics coverage fits your driving

COUNTRY Financial DriverIQ scores a specific set of driving behaviors: phone use, braking and speeding. Whether that translates into savings depends on your own driving habits. Talking with a representative about DriverIQ and reading the DriverIQ Terms & Conditions may help you decide whether it fits your driving.

Frequently asked questions

Published 10-23-26