USAA discontinues standalone “Pay as You Drive” program

Noblr , owned by USAA, is ending its standalone “Pay as You Drive” program as part of a broader strategic shift, according to state filings.

USAA bought Noblr in 2021 to tap into its usage-based insurance (UBI) expertise. Over time, Noblr grew from 8 states to 15, but USAA has now decided to bring all telematics-based insurance under its “Usage-Based Program.”

System incompatibilities between Noblr and USAA prevent seamless policy transitions, requiring customers to reapply for coverage.

Noblr will stop writing new policies in Colorado on January 19, 2025.

According to filings, “Though we are nonrenewing the policies, we intend to offer all eligible policyholders the opportunity to choose an active auto program within the USAA companies as a replacement that will include a telematics offering.”

Noblr, which launched in 2019 in Colorado, Texas, New Mexico, Arizona, and Ohio, expanded to Louisiana and Pennsylvania in 2020, and further to Maryland, Illinois, Georgia, Virginia, Missouri, Wisconsin, Nevada, and Indiana in 2022. As of August 2024, the company has the following active policies and annual premium volumes across several states:

• Virginia: 1,188 policies ($1.57M)
• Ohio: 543 policies ($594K)
• Georgia: 2,316 policies ($5.02M)
• Missouri: 390 policies ($544K)
• New Mexico: 211 policies
• Indiana: 289 policies (October 2024, $313K)
• Colorado: 916 policies ($1.5M)

The discontinuation plan applies across the states mentioned above.

USAA provided the following comments:

• USAA is not discontinuing the pay-as-you-drive program. We are integrating an updated version of the program into our core auto insurance offering, which requires filings with the state departments of insurance. The offering is currently available to our members in nine states with plans to expand countrywide, where possible, in the months and years to come.
• This integration will provide our members with easier access to USAA’s full range of auto insurance products, enhancing their ability to choose a plan that best fits their driving habits and financial needs.
• Noblr will continue to serve as an incubator for USAA, enabling rapid testing and deployment of new insurance products and solutions that address the changing needs of our members.