Steer the cost of your insurance in the right direction with telematics

When it comes to finding car insurance, it can be trickly to find the best policy that gives you all the coverage you need, whilst also helping you save money on your premiums.

However, this can all be made much simpler by taking out a telematics insurance policy.

In this article, you’ll learn about telematics insurance, including what it is and why it’s the best option for you and your car.

Scroll down to find out more.

What is telematics car insurance?

Telematics car insurance is a specific type of policy that allows your insurer to track your driving behaviors using advanced technology, so they can offer you premiums based on this.

Telematics technology collects and transmits data through telecommunications (phone lines, cables, cellular networks) and informatics (computer systems), so that aspects of your driving can be revealed to your insurance provider.

In order to have the technology pick up your driving behaviors, you need to first have it installed in your car. This is usually done through a chip that’s put in your car windshield, but it can also be done through an application on your phone. For this to work, you’ll need to have location services active at all times.

The telematics will collect a wide range of data surrounding your driving, which will all contribute towards your level of safety as a driver. This can include things such as:

  • Whether you abide by speed limits
  • How safely you stop at stop signs
  • How well you execute certain maneuvers
  • The times of day you drive most often

Your insurer will be able to review this data and then assess your level of safety as a driver – i.e., how likely you are to be involved in an accident. Then, they will offer you insurance premiums based accurately on the data they’ve analyzed.

Why is telematics the right decision for your car insurance?

Telematics can be the perfect insurance option for your car, for a large number of reasons, including:

  • Discounted premiums for safe driving

Telematics insurance can allow you to receive discounted premiums for safer driving, through analysis of your driving behaviors.

For certain demographics – commonly young or new drivers – insurance premiums are higher on average, since these groups are statistically more likely to be involved in an accident.

However, with telematics insurance, you won’t receive premiums based on any generalizations, but based on your exact driving.

Therefore, regardless of your demographic, if you drive safely and obey the laws of the road, your insurer will be able to see this and then offer discounted premiums as a result.

  • Location-based technology

You’ll also see benefits through the location-based technology. Telematics uses global positioning system (GPS) to continuously track your car’s location.

This is useful when it comes to any emergency situations where you’d require roadside assistance, like a breakdown or collision, for example.

Using the technology’s GPS tracking, assistance can be sent out to your exact location much quicker, without the need for you to describe your position or direct them.

This means, in many emergency scenarios, telematics can help improve your safety and speed of car recovery.

  • Tracked car mileage

Telematics can also track your car mileage, and this is important for helping you save money on your premiums.

Once again, the GPS can track where your car is at all times, allowing your mileage to be tracked also.

Many insurers increase the costs of premiums for drivers who accumulate more mileage – since the more you drive, the higher your chances of an accident are.

However, with telematics showing your insurer an accurate picture of your mileage and travel habits, you can receive discounted premiums if you rarely use your car.

Its clear telematics is great insurance option for all drivers, so make sure you consider taking out a telematics policy with your chosen provider, and contact them for more information.

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