Have you ever heard of telematics? Our aim with this blog post is to provide you with all the information you need to determine whether telematics is right for you.
Intro to Telematics
Telematics refers to the collection and transmittal of detailed information to drive informed decisions. In the auto insurance industry, telematics is used to observe driver behaviors and then use that information to calculate rates and investigate accidents.
Getting Started with Telematics
If you aren’t using telematics yet and you’re a cautious, responsible driver, now might be a good time to explore the potential benefits (like lower auto insurance premiums). The process is easy, even for those who aren’t very tech-savvy:
- review the details of the telematics program your insurer offers
- decide whether telematics is right for you
- plug the device provided by your insurance company into the diagnostics port in your vehicle (we can help you find it!)
- drive responsibly
That’s it! The device and your insurance company will do all the work from there. The device will monitor episodes of speeding, hard braking, and sharp turns, learn more about when, where, and how often you drive, and gather information before, during, and after a crash. Behind the scenes, your insurance company will use that information to customize rates for the level of risk you pose.
Nationwide, Safeco, Progressive, and Travelers offer telematics programs, but so do many other insurance companies. Ask your agency for more information.
Telematics Data Use Explained
Most consumers want to know exactly how their data is used before agreeing to share more information about themselves. In this case, your data is used for your benefit:
- to create customized premiums for you, so you don’t have to be judged based on how other drivers your age and gender driver, resulting in lower premiums in most cases
- to identify vehicles involved in a hit and run or leaving the scene of an accident, so you have access to benefits if you need them
- to exclude drivers who pose too much risk to the company and other drivers, keeping you safer on the road and keep your rates lower
- to promote safe driving habits, decreasing your risk (or your teenage driver’s risk) of an accident or serious injury
- to better understand the circumstances surrounding an accident, providing a foolproof witness in case your statement doesn’t align with the offending driver’s statement
Telematics data can also have unwanted consequences. If you brake hard, speed often, or engage in other high-risk driving behaviors, you might see your premiums increase instead of decrease. It’s important to drive cautiously and responsibly for your own safety and the safety of others regardless of your insurance plan.
Why Consider Telematics
Generally speaking, telematics gives you access to lower car insurance rates. Even if you ultimately decide not to move forward, it’s important to explore your options at least to determine whether savings are available.
To learn more or take your first step toward a telematics program, contact Binford Insurance today.