What Telematics Insurance Brings To The Table

0
518
Telematics Insurance

With such a wide variety of insurance policies to choose from, it can be challenging to know which one suits you and your car best.

That being said, one type of insurance that has a lot to bring to the table, is telematics insurance.

Throughout this article, you’ll gain an understanding of what telematics insurance is, as well as the many reasons you can benefit from getting telematics for your car.

Read on to find out more.

What is telematics insurance?

Telematics insurance is a particular type of policy that involves the use of technology to anlayze your driving behaviors, where your insurer can alter your premiums in accordance to the data.

The technology behind telematics insurance includes telecommunications – phone lines, cables, cellular networks – which transmits data to your insurer. Informatics also allows for the data to be structured and organized through computer systems.

Telematics Insurance

In order to transmit data to your provider, you need to have the technology installed in your car. One method of doing this is to have a special chip installed in your car windshield. Another method, is to have an application installed on your cell. This will then use your cell’s location services and motion sensors.

Telematics then transmits data surrounding various aspects of your driving, which can include:

  • How safely you maneuver
  • Whether you follow speed limits properly
  • How well you stop at stop lines

This data is then displayed for your insurer, who gains a clear picture of how well you’re driving on the road. As a result, they can then change your insurance premiums to align with your driving safety.

How can telematics insurance benefit you as a driver?

Telematics insurance can bring a wide range of benefits to you as a driver, some of which can include:

  • Discounted premiums for driving behaviors

Telematics insurance can offer you discounted premiums for certain driving behaviors you exhibit.

For most insurers, any drivers who are young or new are more likely to be involved in an accident – based on statistics – so naturally, their premiums are higher.

With telematics insurance, you can ensure your premiums are tailored to your unique driving, not that of your demographic. If, therefore, you’re always driving safely and abiding by the laws of the road, your premiums can be lowered to reflect this.

  • Location-based technology

Telematics insurance uses location-based technology, meaning your car is constantly tracked using global positioning system (GPS).

This is important for helping you get the best premiums, since they can be offered in alignment with how frequently you drive, as shown by your location-based software. 

Once again, statistics would show the more often you drive, the more likely you are to be involved in an accident.

Thus, if you’re driving less often, your telematics technology will pick up on this with GPS tracking, and your insurer will see evidence that warrants a lowered premium for your car.

  • Insights into driving safety

The data analyzed by your telematics technology can show you, in detail, exactly how well you drive.

As mentioned above, this can include things such as your ability to stop safely, how well you follow speed limits, and much more.

Therefore, you can use this data to assess how effectively you’re performing each crucial aspect of driving.  As a result, you’ll see all the areas that can be refined, and you’ll be more aware of how to make your driving safer.

And as a bonus, this also means your premiums can start lowering, too.

Now you know what telematics insurance brings to the table, why not tuck in, and find the best telematics insurance provider for you and your car?

Read Also : Tips To Save Money When Purchasing Your First Home Insurance In Texas