Drivers are being rewarded like never before for following traffic laws and operating their vehicle safely. Car insurance providers are increasingly allowing safe drivers to get some benefit for their efforts through discounted rates. After all, if you have proven yourself a safe driver, you are much less of a risk to cause an accident or injury. In order to obtain proof of your exemplary driving habits, car insurance companies are adopting a new technology known as telematics.
What is Telematics and How Does it Work?
Telematics is a technological tool that enables insurers to collect data regarding their customers’ driving habits. Telematics calculates a risk profile based on individual drivers’ performance. If the customer decides to opt in, the insurer will adjust pricing according to driving behavior – rewarding safe drivers with discounts and better rates.
The approach to data collection varies by provider, but often utilizes a plug-in device installed in the vehicle, or an app downloaded to the customer’s phone. Telematics apps vary, with some integrated into the insurance company’s own app; while others are downloaded separately. As a policyholder drives their car or truck, the app amasses data from each trip and calculates a score based on variable characteristics, such as speeding, sudden braking, rapid acceleration, cornering and phone usage. The app will gather all the information based upon your habits overtime, and assign a driving score which will determine your eligibility for discounts.
The driving score allows insurance providers to quantitatively assess which drivers are less likely to be involved in accidents over the term of their policy. It then gives a reward for this good behavior with a lower insurance premium. Understanding that the mere knowledge that their habits are being tracked is likely to inspire more careful driving behavior, many companies offer a discount simply for using the app – and additional discounts as time progresses and the driver continues to drive safely.
Why is Telematics Good for the Insured?
In addition to discounts on their monthly premiums, telematics technology may provide peace of mind for parents with teenage drivers on the road. Some apps allow the primary policyholder to see the scores of everyone on the policy, meaning that parents will know if their teens are being safe – or reckless. The primary policy holder (generally a parent) can observe scores whenever they choose.
Getting Your Discount
Each insurance company currently offering this technology has different applications for it, so ask your local insurance professional if telematics is offered by your insurer. While making that inquiry, be sure to ask about other discounts which may be available to you.
You may be able to get a better rate if:
- Your driving habits have changed, such as if you now work from home instead of driving to an office.
- Your car is older and you no longer require collision coverage
- You have been accident free for a long period of time
- You have started parking your car in a garage instead of on the street.
- You can bundle your home and auto insurance.
In fact, there are many ways to save money on auto insurance. If you are interested in learning more about companies that offer telematics, or finding out if you can get a better rate from a different provider, call Anderson & Associates insurance Group. We are here to help Bradenton, Parrish and Palmetto area drivers to get the best auto insurance available to them within their budget. Call today for more information.
