If you’ve been curious about telematics in auto insurance, this blog post will provide almost everything you need to know to make the most informed decision for you and your family. If you have questions after reading it or are ready to move forward with a quote, we’re prepared to help at Long & Company.
A Quick Overview
Many major insurers like Travelers, Safeco, and Progressive offer telematics programs. When you choose to participate in a telematics program, you agree to place a device that records your driving behavior in your vehicle to gain access to discounts and lower insurance premiums. The insurance company typically provides this device, but you’re responsible for plugging it in (and ensuring it stays plugged in while you’re under the telematics policy).
The Data Collected
While there are some differences between one plan and the next, the data collected is usually pretty similar. Your insurer will most likely gather the information that includes how often you engage in high-risk behaviors (hard braking, sharp turns, speeding), how many miles you put on in a day, and where and what time of day you drive. Additionally, telematics devices record information before, during, and after an accident that can be helpful in defending drivers: which other vehicles were involved, the severity of the impact and likelihood of damage to the other vehicle or injuries, and the location and extent of damage to your own vehicle.
How Drivers Benefit from Telematics
Right now, your insurance rates are calculated based on the statistical driving habits of people like you. For example, if you are a married, 45-year-old female living in Oconomowoc, your rates will be calculated based on claims data from other 45-year-old females living and driving in Oconomowoc. Additionally, if you have a 17-year-old son on your plan, the premiums you pay for his coverage will depend on the statistical driving behaviors of other 17-year-old boys in your area (and those statistics aren’t very good).
Telematics allows insurance companies to charge higher premiums to at-risk drivers instead of dividing the cost up between everyone, and they use information about your own driving habits and the driving habits of those insured on your plan to do so. For responsible drivers, that usually means discounts and lower rates. For hasty drivers, it might even motivate safer driving habits long-term, reducing their risk of injuring themselves or someone else on the road.
In some cases, it might reduce the risk for the insurance company and, subsequently, all drivers, by helping the insurer to make decisions about who not to insure. Drivers who engage in frequent high-risk behaviors may be removed from the plan.
Finally, accident data collected by telematics devices can be especially helpful in proving fault and defending drivers from false claims filed by other parties involved in an accident.
Getting a Telematics Quote
If you’re ready to learn more about the telematics program or simply explore options for lowering your car insurance rates, the team at Long & Company is ready to help. For your convenience, you request a quote online, and we’ll get back to you as soon as we can!