Many of today’s drivers are constantly looking for new ways to optimize their car insurance. This means taking out a policy that best suits your car and individual driving preferences.
With advances in technology, this goal is now much easier to achieve. The answer is simple – telematics insurance.
In this article, you’ll learn what telematics insurance is and how technology has helped improve car insurance for motorists.
Also, read about the best insurance telematics on the market to make sure you’re getting the best deal for you.
What is Telematics Auto Insurance?
Telematics Insurance uses advanced technology to analyze your driving behavior, allowing insurance providers to offer premiums based on your driving behavior.
This technology works through telecommunications (mobile networks, cables, telephone lines) and informatics (computer systems to organize data) where the insurer can receive data transmitted by your car.
In order to have the technology installed in your car, you often need a special chip that is inserted into your windshield. That being said, new technology today can allow telematics to run on top of an application developed for your cell – all you have to do is keep your location services on.
Telematics analyzes various aspects of your driving, such as: B. Your ability to stop safely, how well you execute manoeuvres, whether you obey speed limits and much more.
This data is visible to your insurer, who can then get a more accurate picture of how well you’re driving. In response, they may adjust your insurance premiums based on your behavior as a driver.
How has telematics improved car insurance?
Telematics technology has greatly improved auto insurance today in many ways. This includes but is not limited to:
- Premiums tailored to your driving safety
Telematics has massively improved car insurance as it now gives you the ability to get premiums tailored just for you your unique driving.
According to statistics, new or young drivers who seek insurance often receive higher premiums from insurers. This is simply because of their statistical probability of being involved in an accident.
However, this generalization does not take into account the many drivers in this category who drive with extreme caution and safety.
With telematics, your insurer can see exactly how well she drive, and give you rewards tailored to those clear dates.
So, safer driving will reward you with reduced premiums.
Telematics have also improved car insurance, increasing the level of safety for many drivers in a number of emergency scenarios.
The technology used for the telematics is location-based and uses the Global Positioning System (GPS) to continuously track your location as you drive.
This is of great benefit in the event of an accident or breakdown where you may need roadside assistance.
Location-based software gives you a more accurate fix, giving you faster roadside assistance and a more accurate location.
This gives you, the driver, the certainty that your telematics system will contribute to your safety in any emergency.
- Analysis for your unique driving behavior
Another great benefit of telematics for your insurance company is that not only does it analyze your driving safety, but it can also analyze more unique behaviors to further improve your premiums.
For example, most insurance providers are likely to offer increased premiums for drivers who use their cars frequently. It’s a simple statistic – the more you use your car, the more likely you are to be involved in an accident.
However, with telematics insurance that uses a location-based system, your insurer can see exactly how often you drive your vehicle, when it’s used, and how long your trips are.
In this way, you can receive lower premiums if you use your car less often, instead of paying unnecessarily for supposed trips that you don’t actually make.
As you can clearly see, telematics insurance has drastically improved auto insurance in a number of ways. So make sure you choose your own telematics policy provider now to benefit from the technology yourself.