How to Save Money, Stay Safe With Car Apps and Tracking Devices

You can use car apps and tracking devices to lower your car insurance, save on gas and more

Cheryl Maguire,

AARP

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En español

Published June 30, 2025

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“I got another check and this time it’s for $166,” my 79-year-old mom proclaimed. When I asked where the checks were coming from, she told me her car insurance company rewarded drivers by offering cash back if they drove safely.

To participate in the program, she was required to download an app on her phone that tracked her driving. After six months, the company deemed her a safe driver — following the speed limit, not braking hard and not using her cellphone while driving — and she got her check. She gets one every six months.

Apps to help you save on insurance are not the only car tech you can use to drive more safely and save money. Here’s what to know.

First, the types of car tracking devices

Car tracking devices fall into three main categories: smartphone apps, plug-in diagnostic dongles and factory-installed systems. The specific advantages to tracking devices depend on the type and purpose, according to Alex Miles, chief operations officer at EpicVIN, a company that provides customers with vehicle history reports.

AARP's SafeTrip app

AARP offers the free SafeTrip app, which allows you to monitor your driving habits. AARP SafeTrip users also have access to CrashAssist, designed to contact you and offer assistance when a crash occurs.

Smartphone apps. These are mainly used to track your driving habits. If you’re using it to save money on your car insurance, just note that the app must partner with your insurer, so check before downloading anything. These apps are typically free.

You can use general location tracking apps, such as Life360, TrueMotion Family and Drivemode, to monitor speed, braking patterns and follow trip routes. The apps can generate reports you can review or share with family members. Some require subscription plans; Drivemode and TrueMotion Family are free, while the costs for Life360 range from about $100 to $300 per year.

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Diagnostic dongle devices. About the size of a small box, a diagnostic dongle plugs into your car’s OBD-II port (usually below the dashboard) and transmits data to the cloud (that you can receive on your smartphone via an app) about engine diagnostics or fuel use. Some diagnostic dongles also have GPS functionality so you can track your whereabouts. Lauren Fix, an automotive expert and founder of carcoachreports.com, an auto news and car reviews website, advises a quality device is usually about $90, and a subscription for service starts at around $120 to $300 per year. Insurance companies may offer discounts if you install their approved dongle. Some examples are Hum by Verizon, Bouncie and Vyncs.

Factory-installed tracking. Many automakers build tracking directly into their vehicles. Examples include OnStar for General Motors, Safety Connect for Toyota and BMW Roadside Assistance. The primary purposes are emergency assistance, vehicle security, diagnostics feedback and maintenance reminders. Subscription plans vary by manufacturer.

Now, how to save money and stay safe

Car insurance prices. If you have a car tracking device, contact your insurance company and ask about discounts for using one.

Using one can save you money if you’re a safe driver, says Fix. However, the amount of money you can save varies by insurance company, she adds. Fix also cautions that it’s possible for a car insurance company to raise your rates if you are an unsafe driver.

Maintenance costs and safety. As mentioned above, a dongle can run diagnostics on your car, and in some cases, it can help you get information about potential issues related to your tire pressure, for instance. Plus, the dongle can track if you’re driving safely, which has benefits other than avoiding a ticket and lowering your insurance premium. “Safe driving means you’re not speeding, you’re not hard braking, you’re not hard cornering. All of that is ways to drive more fuel efficiently,” says Solange Velazquez, who focuses on transportation tech as part of her job as a managing director at the financial advisory company Solomon Partners Technology Group.

And feedback about poor driving can help you change your habits, according to a 2025 study by AAA.

Find the lowest gas prices. You can use different apps to find the least expensive gas prices in your area. Some popular apps that are free to download include GasBuddy, AAA Mobile (free for AAA members with a basic plan) and Gas Guru.

Safety features for drivers with cognitive issues or teenagers. One feature my mom likes about the app she uses to save on car insurance is that it has crash detection and will send a notification to her phone to offer help if it detects she’s been in a car accident. Some flagship smartphones have crash protection as a built-in feature as well. For example, the iPhone 14 and later versions can detect a severe crash and connect you to emergency services, as can Google Pixel.

Velazquez says that another feature some car tracking apps and devices offer is called geofencing. It allows you to create a virtual boundary for where a person can drive, and if they go outside of that area, you’ll receive an alert. Apps that offer geofencing include Life360, Tracki and BrickHouse Security Spark Nano 7.

Privacy issues to consider before signing up

It's important to note that if you use apps and tracking devices, companies are likely collecting your data — and they may sell that data to third parties. Although, Miles adds that your data is likely already being sold through your smartphone or other technology you use, so it's not worth losing sleep over. “I feel like that [car tracking devices] pales in comparison to the huge privacy concerns that we already have with pretty much all of our technology across the board,” he says. Still there are ways to keep your information as safe as possible, such as download apps from well known vendors such as Google or Apple, read reviews and ratings before downloading, never give out your password and don't OK remote access, according to an AARP article on the issue.

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Additional reporting by Christine Coppa, a researcher for AARP.

Cheryl Maguire is a freelance writer whose work has been published in The New York Times, National Geographic, The Washington Post, The Boston Globe, Parents Magazine, Healthline and many other publications. She is a professional member of the American Society of Journalists and Authors.