Whether you’re a new, young, or experienced driver, it’s highly likely that you’re looking for the best ways to lower the cost of your car insurance.
There are many different ways this can be achieved, yet the most effective method comes down to the type of car insurance policy you take out.
The answer to lowered car insurance costs – telematics insurance
In this article, you’ll learn how car telematics works, and how telematics insurance can be used to lower the cost of your car premiums.
Read on to learn more.
Table of Contents
What is telematics car insurance?
Telematics insurance is a car insurance policy that uses advanced technology to assess your behaviors as a driver, so your car premiums can be adjusted to align with them.
In order for telematics insurance to work, you need technology installed into your car that operates through telecommunications and informatics.
Essentially, this means data from your car can be transmitted through things like phone lines, cables, cellular networks, etc., and computer systems that organize and structure the data.
The technology for telematics is usually installed as a chip into your windshield, but more advanced technology can allow for an application on your cell to transmit the data – you just need to keep location services switched on continuously.
Once in your car, telematics will then gather and analyze data on various aspects of your driving abilities. This can include:
- How well do you stop at stop lines
- How safely do you execute turns and maneuvers
- If you stay within speed limits
- The times of day you’re driving
This data will be transmitted to your insurance provider, so they can gain an accurate picture of how safely you drive, and what your particular driving behaviors are on the road.
In response, your insurer can then adjust your insurance premiums based on how likely you are to have an accident, as shown by the telematics data.
How can telematics lower the cost of your car premiums?
Car telematics can significantly lower the cost of your car insurance in a variety of ways, which includes:
Discounted premiums for safe driving
The main benefit of using telematics car insurance is that you can receive a discount on your insurance premiums, based on the safety of your driving.
It’s highly regarded amongst insurers – due to statistical facts – that drivers of a certain demographic are more likely to be involved in an accident. This often includes any drivers who are young or new to driving entirely.
As a result, these groups are more likely to have increased costs for their insurance premiums.
With telematics, however, your premiums won’t be based on generalizations, but instead, actual evidence of your unique driving safety.
If your telematics reveals that you’re driving safely across a range of different metrics – as mentioned above – then your insurer can lower your premiums, as you’re less likely to be involved in an accident.
Lower costs for less frequent driving
Another way telematics can lower the cost of your car insurance, is through its ability to track your mileage.
Telematics uses location-based technology, that tracks your car’s location with a global positioning system (GPS). This GPS is constantly active, so it can provide data on how often you drive, and how many miles you travel.
It’s also a statistical fact that the more you drive, the more likely you are to be involved in an accident. Therefore, driving less frequently should warrant lower premiums, and telematics can do exactly this for you, with your insurer tracking your mileage.
— Telematics insurance is one of the best ways to save money on your car insurance costs, so find your chosen provider now!