SALT LAKE CITY — Using your phone while driving might sound like a recipe for disaster. But an estimated 17% of insured drivers are using their phones to save money on auto insurance, according to J.D. Power.

Yeah, they’ve installed apps that keep tabs on their driving.

“If you’re a good driver, you’re likely going to see a discount from using a usage-based system like that,” said Insurance.com executive editor Leslie Kasperowicz of usage-based insurance.

She said the apps typically track habits like speeding, fast acceleration, hard braking, sharp turns, phone use, your mileage, and even what time of day you’re driving.

“All those sorts of things that play into your risk of getting into an accident,” she said.

If your insurance company likes how you drive, you might earn a discount – usually around 10% to 25%.

You should know

However, it can also go the other way.

“Some companies will increase your rates if you’re not a great driver,” Kasperowicz cautioned.

That can especially sting for stuff out of your control, such as having to make a late-night commute for work or the app mistakenly identifying you as the driver when you’re a passenger.

However, there are also privacy concerns. Some insurance companies might use your driving data in their accident investigations and that could work against. Other companies might share your data with third parties.

“There have been reports of insurance companies selling or sharing that information,” Kasperowicz said.

So, she said, before you install the app, read its terms and conditions. If you don’t like what’s said about how your driving data is collected, used, and shared, don’t use the app.

On the other hand, if you’re a good driver, don’t put a lot of miles on your car, and you’re comfortable with how your data will be used, usage-based insurance could help you beat inflation.

A better driver?

It might make you a better driver, too.

A University of British Columbia study of 30,000 drivers found people tend to develop safer driving habits within six to eight weeks of having a tracking device installed in their cars.

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