When finding insurance for your vehicle, there are lots of things to consider in order to ensure your new policy has the best deals, catered specifically to you and all your driving needs.
Before you make your final decision, one thing you should definitely consider is telematics insurance. Car telematics uses location-based technology to track your milage and driving safety, adjusting your premium accordingly.
This means you could save money on your car insurance by simply being a good driver.
And there are plenty more benefits to telematics insurance. Read on to find out more.
How telematics work
Telematics is the term used to explain how insurance companies gather data from telecommunications, such as phone lines, cables and cellular networks, and informatics, which are like computer systems.
The data is collected from the individual driver through a special chip installed in the car’s windshield, or through your phone, using the nifty tools already installed, like a gyroscope and Global Positioning System (GPS).
With this data, insurers can track driver behavior and safety, monitoring the small movements of your phone to calculate whether it’s positioned in your pocket, a bag, or in a holder on your dashboard.
The gyroscope in your phone will also be able to tell whether it’s you driving or not, based on the wealth of information it has collected, so if you find yourself in a taxi or on a bus, for example, and the drivers aren’t as cautious as you usually are, you don’t have to worry about this having an impact on your insurance.
You’ll be pleased to know that telematics takes a lot into consideration, using GPS to monitor speed limits and make sure you’re abiding by them, as well as whether you’re performing safe maneuvers, or breaking smoothly rather than suddenly.
Gone are the days of guessing how many miles you drive each year, as your coverage will also be tailored based on your precisely measured mileage, as well as the time of day you more frequently drive.
Someone who drives long distances or in the dark is exposed to greater external risk as someone who drives in the daytime, or for short distances. Therefore, if your mileage is low, the risk for the insurer is lower, and your premium is likely to be less.
You’ll find plenty more benefits when opting for telematics insurance, such as tips and tricks on how to become an even safer driver, helping you to lower your premium further.
Also, if you’re ever involved in an incident such as a breakdown or collision, telematics can help to pinpoint your exact location, sending roadside assistance directly to you, without you having to try and figure out where you are.
Telematics insurance is particularly beneficial if you’re a new or younger driver, or fit into a demographic that is statistically deemed more likely to be involved in an accident. This is because the data recorded will allow your premium to be adjusted based on how you drive, not how people like you are expected to drive.
Is telematics insurance right for you?
With all this in mind, figuring out if telematics insurance is the right road for you, is the next step.
You should consider other types of insurance premiums, such as multi-car insurance if you have more than one car you need to insure, or electric insurance if you own an electric or hybrid vehicle.
Different types of insurance can each be tailored to meet your specific needs, so you should weigh up all the factors that might contribute to the cost, and see which is most efficient for you. With telematics, though, you’re guaranteed to get a personalized insurance plan, created using your specific data and rewarding you for your safe driving.
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