Using Car Telematics – A How to Guide
For many drivers today, telematics insurance is the best option to give you the coverage you’re looking for, at the most accurate and cost-efficient price for your premiums.
Whether you’re completely new to telematics insurance or you’ve heard about it before, you might be considering this as your next policy.
In that case, it’s likely you’re looking for a guide to answer your many questions, including – what is telematics insurance? How do you use telematics in your car? And what are its benefits to you as a driver?
Read on to find the answers.
What is telematics insurance?
Telematics insurance is a special type of car insurance that involves the use of advanced technology to analyze your driving, so you can receive premium costs that reflect your safety.
Most insurance policies rely on upfront information to tailor the cost of your premiums, but with telematics, your insurer will receive continuous and accurate data on which to base the cost they offer you for your premiums.
How do you use car telematics?
In order to work, telematics needs to be installed in your car, so that it can analyze and transmit data from your car to your insurer.
This is done through technology that uses telecommunications (phone lines, cellular networks, cables) and informatics (computer systems) to gather can transmit the data.
The technology is usually installed in the windshield of your car as a computer chip. However, some insurers offer a downloadable application that can be installed on your phone, which uses your motion sensors and location services to collect and send the data.
The data gathered can cover various aspects of your driving, such as:
- Your ability to turn and maneuver safely
- If you’re stopping at stop signs in good time
- How well you abide by speed limits
- What times of the day you drive
All this information will help paint a clear picture for your insurer, showing them how well you drive, and subsequently, how likely you are to be involved in an accident. This then gives them a basis on which to adjust your premiums so it accurately reflects your driving behavior.
What are the benefits of using telematics for your insurance?
There are a variety of benefits to using telematics for your insurance policy, which can include:
Premium costs tailored to your driving behavior
Telematics insurance can enable you to get a fair and accurate cost for your premiums, in accordance with how safely you drive.
For many demographics – young and new drivers in particular – insurance premiums are much higher, simply because they’re assumed to be more likely to have an accident, according to statistics.
With telematics, you can show your insurer an accurate picture of how safely you drive, so that regardless of assumptions about your demographic, your insurer can see how you drive.
As a result, safer drivers can receive cheaper premiums!
Accurate vehicle tracking with GPS
Telematics also uses location-based technology to track your vehicle. This is done through global positioning system (GPS), which can pinpoint your car’s exact location.
This means, in the event of a collision or breakdown, for example, you’ll be able to know exactly where you currently are. This location can then be sent to your emergency services or roadside assistance, so they can reach you faster.
This results in a much safer driving experience, and confidence in your telematics technology to assist you in any emergency scenarios.
Telematics insurance is one of the best policies to take out as a driver, and once you find the right provider to issue your technology, you can start experiencing its many benefits for yourself.
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