When looking for car insurance, it’s important to find a policy that not only offers the coverage you need for your vehicle, but also comes with a range of benefits for your driving.
Thanks to technological advancements in the automotive industry, a great policy available to drivers today is telematics car insurance.
In this article, you’ll learn all about telematics insurance for your car, including what it is, how it works, and how it can benefit your driving.
Read on to learn more.
What is telematics insurance?
Telematics insurance enables your driving behavior to be accurately assessed by your insurer, so they can offer you a price for your premiums that’s more closely aligned with your driving safety.
Using advanced technology, your telematics insurance will analyze various aspects of your driving, and use this data to create a clear picture of how safely you drive. As your insurer, this will show them how likely you are to be involved in an accident, and therefore, make an insurance claim.
Once they know this, they can reflect this likelihood in your premium costs.
How does telematics insurance work?
Telematics insurance works using a unique form of technology that needs to be installed in your vehicle.
The technology uses telecommunications (cables, cellular networks, phone lines) and informatics (computer systems designed to organize data), to transmit all the necessary data to your insurance provider.
In order for the technology to analyze your driving, it needs to be installed in your car. This is done through either a computer chip in your windshield, or an application installed on your mobile device.
This allows the software to analyze your driving accurately, and relay the information to your insurer.
How can telematics insurance benefit your driving?
Telematics insurance can be beneficial to your driving in a range of ways, including:
Discounted premiums for safer driving
One of the main benefits of telematics insurance is that it gives you discounted premiums when you show that you’re driving safely.
When it comes to standard insurance, your premiums are based on a range of factors – such as your personal information, car details, driver history, etc. – but they can also rely heavily on generalizations about your driving.
For instance, new and young drivers are seen as much more likely to have an accident, and therefore, insurers often give them a higher cost for their premiums.
However, with telematics insurance, your premiums will be based on your driving, not that of others like you. With the accurate data collected by your system, your insurer will have a clear picture of how well you’re driving, and not need to rest on assumptions.
As a result, safer driving will result in a cheaper price for your premiums.
Another benefit of telematics insurance is that it runs on location-based software, which accurately tracks your vehicle location.
This is beneficial for any scenarios where you might require emergency roadside assistance. For example, you might have had a collision with another vehicle, or find you’ve broken down in a remote location you don’t know.
Using global positioning system (GPS), your telematics technology will be able to accurately pinpoint your vehicle location. This means you won’t need to waste time trying to figure out where you are, or try and describe your location to emergency services.
Instead, you can give them an exact pinpoint, and the assistance can reach you much faster. This greatly increases your safety as a driver, and also your confidence in handling any emergency situations.
With all the benefits that come with telematics insurance, make sure you contact your chosen provider now to start on your own policy.