Allstate expands usage-based insurance program, launches smartphone app in the U.S.

Auto insurer Allstate has expanded availability of its usage-based insurance tool, dubbed Drivewise, in the United States.

The device is now available in 16 states, the company said Monday, after adding availability in Missouri, Indiana, Minnesota,Maryland, Utah, and Washington State.

Drivewise, a device that plugs into a vehicle’s on-board diagnostics port, measures elements such as mileage, braking, speed, and time of day when policyholders are driving. That data is used to calculate a discount based on Allstate’s telematics technology, the company said.

The insurer has also launched a new UBI app for smartphones, available for free through iTunes (for Apple devices) or Google Play (for Android devices). After registering the app online, drivers can get “near real-time updates with each trip,” Allstate said.

Customers can also view their information through a web portal. Allstate says the average discount for policyholders using the program is around 14% and that rates will not go up based on the driver score calculated through its telematics program.

Allstate launched the Drivewise UBI program in Illinois in December 2010. The company said it expects the majority of its marketplace to have the tool by the end of this year.