We know auto insurance premiums are increasing. In fact, we just wrote a blog post about it! One option we usually suggest for reducing your premiums is signing up for telematics. So you’re probably thinking “What is telematics?!”
Telematics 101
Even if you have a good driving record, your insurance company might not know how good you really are. With a telematics program, the insurance company customizes your rates based on your driving habits. This is a great opportunity for above average drivers to save a lot of money on their car insurance.
This type of program rewards safe driving with savings on your insurance. It captures your driving habits with an app installed on your phone or with a device plugged into your vehicle. The app or device collects and communicates driving information for a duration of time. This can include information about the vehicle’s location, speed, acceleration, braking, fuel consumption, engine diagnostics, and more. Progressive Snapshot, Travelers IntelliDrive and Westfield UBI are examples of these types of programs.
How can telematics help me?
Insurance companies will use your collected driving data to adjust your premium. This can lead to great savings on your auto insurance premiums.
How do I sign up for telematics?
Here are some reasons why you might consider signing up for telematics:
Insurance Discounts
Many insurance companies offer telematics-based programs. These programs are sometimes called usage-based insurance (UBI). The company uses data collected from your vehicle to determine your premiums based on your actual driving behavior. Safer driving habits could lead to lower insurance rates!
Safer Driving
Telematics systems monitor various aspects of your driving, such as speed, acceleration, braking, and even sharp turns. Most insurance programs include an app or website you can use to view your data. This feedback on your driving behavior helps you be more aware of any risky habits and work on improving them. By making a few adjustments, you can make the roadways safer for you, your passengers and others on the road.
Improved Fuel Efficiency
Telematics can provide insights into your fuel consumption patterns and offer suggestions on how to drive more efficiently. This could include recommendations on how to accelerate and decelerate, as well as advice on maintaining a steady speed. All of these habits lead to. better fuel efficiency. And who doesn’t like to save a few bucks on gas these days?
Maintenance Alerts
Telematics systems can monitor the health of your vehicle’s various components and systems. When the system detects potential issues, you can receive real-time alerts. This will allow you to address the problem before it worsens. This proactive maintenance can save you money on costly repairs in the long run.
Telematics and Fleet Management
If you run a business that involves a fleet of vehicles, telematics can be invaluable for managing your assets. You can track the location of vehicles in real time, monitor driver behavior, optimize routes, and even receive alerts if a vehicle deviates from its planned route.
Accident Reporting
In the unfortunate event of an accident, telematics data can provide crucial information about the circumstances leading up to the incident. This can be helpful for insurance claims and investigations.
Teen Driver Monitoring
For parents of teen drivers, telematics can offer peace of mind. You can monitor your teen’s driving behavior remotely and use the data to coach them on safe driving habits.
Stolen Vehicle Recovery
Telematics systems with GPS tracking can help law enforcement locate and recover stolen vehicles by providing real-time location data.
