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?!”
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:
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!