If you’re a responsible driver, using telematics could be a great way to save since most companies offer a discount on your insurance for safe driving habits. If you’re not sure what telematics is or what it does, read on for some handy information.
What is telematics, and what does it measure?
Telematics is generally a system that records information about your driving habits, such as the number of miles you drive, your speed, and how quickly you brake. These systems sometimes analyze the time of day when you drive, as well. If you use telematics from your insurer, you agree to send this information to your insurance company. In most cases, if the data show you practice safe driving, you may become eligible for car insurance discounts. (If, however, the device shows that your driving habits are not as safe, typically, you are not penalized with higher premiums.)
How is it installed?
In most cases, you download an app on your mobile phone and activate it when you drive. Each driver in the household would need to have the app activated on their mobile device to maximize the potential discounts available.
Some companies use a separate device that plugs into your vehicle. Telematics devices are usually small enough to fit in the palm of your hand, and installation is fairly straightforward.
How does it work?
After you’ve activated your mobile app or hooked up the telematics device, it records driving behavior and provides that information to your insurance carrier. Most companies give an initial discount just for participating, and then additional discounts can be earned with good performance. The amount of required participation time varies from company to company. Many of them are 90 day programs, while others require ongoing participation.
What are the benefits?
Telematics allow customers to control their rate. Many customers like to control their own destiny and a discount they can influence gives them that satisfaction. Using the telematics mobile app or installing a telematics device in your car, truck or SUV can help you qualify for car insurance discounts, which will help you keep some hard-earned cash in your pocket. Safe drivers avoid driving habits such as hard stops, traveling late at night—which can be more dangerous than daylight driving—and moving at high speeds.
An additional perk of adding telematics is that it might make you more cognizant of your driving behavior. Many insurers’ programs allow you to go online to track the data telematics collects about your driving habits, which can help you learn what you need to do to become a better driver.
Better driving habits can lead to even more benefits, in addition to increased safety behind the wheel. If you adjust your driving behaviors so that you avoid quick bursts of acceleration and hard stops, for example, you may also get better fuel economy, which could work out to a few extra miles between fill-ups.
We’d all like to lower our monthly expenses, and if you have safe driving habits, telematics may be one way to help you earn savings—and become a better driver.
If you would like to take advantage of this new technology and lower your auto insurance premium, just drop us an email or give us a call. We’ll be happy to explain the process and get you started!