What Is Telematics Technology For Your Car?
How this policy can benefit you as a driver.
One of the most popular, newer types of insurance policies taken out by drivers is telematics insurance. But what actually it is telematics? And why is it a good option for you and your car? Read on to learn what telematics technology is in your insurance, and how this policy can benefit you as a driver.
If you’re interested in securing your quote for car insurance that prices your policy based on how much and how well you drive, explore more on how telematics works at Lemonade Car here.
What is telematics technology for your car?
Telematics technology is innovative software, now used for insurance purposes. It allows for data to be collected and transmitted across long distances, in real-time.
Telematics is appropriately named for its use of telecommunications as a form of transmitting data – sending data through cables, phone lines, cellular networks, etc. the receiver of this then uses informatics as a method of structuring the data to analyze it.
When it comes to insurance, telematics technology is used as a way of analyzing your driving behaviors so you can receive insurance premiums accurately aligned with how safely you drive.
The technology is usually installed as a chip in your windshield, or sometimes as an application on your cellular device.
The data gathered can involve things like:
- If you obey speed limits.
- How safely you pull off maneuvers.
- How well you stop the car.
- How often you drive.
With this, your insurer can see how well you drive and give you a lower premium for more responsible driving.
How can telematics insurance benefit you as a driver?
Telematics insurance can benefit you as a driver in a variety of ways, including, but not limited to:
- Discounted premiums tailored to you
One of the most significant benefits of telematics insurance is that you can receive a premium that’s reflective of your driving safety, not what’s expected of you.
Many driver demographics – young and new drivers in particular – have higher premiums on average, simply because they’re more likely to have an accident, based on statistics.
This means even safe drivers that fit these profiles will have higher premiums.
With telematics, your insurer will see exactly how you drive, not how you’re assumed to drive, and can give you a discounted premium for your safer driving – despite your demographics.
- Tracking through location-based software
Telematics technology can also provide a location-based system of tracking your vehicle location at all times – as long as you have location services enabled on your cell, if using telematics through an app.
This means that any instance where you may require roadside assistance, such as in the event of an accident or break down, you’ll know exactly where your car is located.
This means you can send a more accurate pinpoint of your location to the assistance vehicles, and they can reach your exact location much faster, increasing your safety in these scenarios.
- Insights into safer driving habits
Telematics insurance can not only help you receive lower premiums, but the technology can also give you thorough insight into your driving habits, as well as how to improve them.
For instance, the data from the technology might reveal you have a tendency to exceed speed limits often, maybe during certain times of the day or in particular areas.
As a result, you’ll know to be much more cautious with checking your speed and following the rules and changes of speed limits at all times.
This will allow you to be a much safer driver, benefiting both yourself and your insurance premiums, which could be reduced accordingly.
Now you know more about telematics insurance and how it works, do you think this is the best type of premium for you and your car?