How Does Telematics Insurance Work?

If you’re a new or young driver or are simply just looking for ways to save money on your car insurance, then you’ve parked in the right place.

Telematics insurance might just be the perfect thing for you. But how exactly does it work?

Join us as we take a look at the ins and outs of insurance telematics for your car, so you can make sure you’re getting the best deal, catered specifically to you and your driving. 

What is Telematics?

Telematics is location-based technology that uses telecommunications (phone lines, cables and cellular networks, for example) and informatics to gather data that can ensure your insurance premiums are priced fairly, based directly on how you drive. 

Some insurance companies might gather this data from you using a chip installed in your windshield, whilst others might require you to simply download an app on your phone. 

This means that you can expect a fairly priced premium, based on how you drive rather than how people like you are expected to drive. All you have to do is keep location services enabled. 

What Does Telematics Measure?

Thanks to telematics, your insurance provider has access to how frequently you drive, the times of day you’re more likely to drive, as well as the distances. 

Statistically, the more you drive, or the further distances you cover, the more likely it is that you’ll be involved in an accident. If this is the case, your insurance premium may be higher than someone who only drives around the corner every now and then. 

Telematics technology will also measure how gently you press your breaks at stop signs, and how safely you perform your maneuvers, for example. The super-sensitive gyroscope in your phone will know whether your device is in your pocket, on the seat next to you, or in a holder – so you can rest assured that each movement you make when driving is accurately recorded and reflected in your premium.

You can even have access to this data, so you can keep an eye on how you’re driving and adapt this where necessary. With this, you could see a lowered premium for driving safely. 

What if Someone Else is Driving? 

With location services enabled all the time, you might wonder what happens to your policy if you find yourself in a Lyft, taxi, or on a bus, for example. Well, even if the driver isn’t performing quite as safe as you might like, the data collected will be able to differentiate this from your driving habits and acknowledge that it isn’t you behind the wheel. 

However, if you’re still concerned, you can check on your app and make sure your premium won’t be affected by someone else’s driving. 

The Benefits

As you can imagine, there are plenty of other benefits of telematics insurance. One of these is that if you are involved in an accident, your insurer can send out emergency services to your exact location, without you even having to look around to find out where you are. 

With this peace of mind, telematics can also help you improve your driving skills, and, of course, personalize your policy to you as a driver, rather than how someone else in your demographic might be expected to drive. 

And, if you’re worried about location-based technology tracking you constantly, the tech-savvy among you will know that plenty of apps use this Global Positioning System (GPS) from day-to-day – including Google, Maps, Waze, Uber, Snapchat and even Pokémon Go. 

---

So, are you ready to keep your insurance costs down, and become a better driver? If the answer’s yes, take a look at telematics insurance today!