There are many reasons why it can be tricky to find the right car insurance. One of the most common, especially for certain types of drivers, is that their insurance premiums are too expensive.
So, how can you obtain an insurance policy that gives you the right coverage with the best premiums?
The answer telematics insurance.
Read on to learn what car telematics insurance is, how it works, and how it can provide you with personalized insurance premiums.
What is car telematics insurance?
Car telematics insurance is a special type of policy for your car, that analyzes your unique driving behavior and provides this information to your insurer.
With most types of insurance, your premiums will be based on your likelihood of being involved in an accident, and therefore, making any claims on your insurance.
The purpose of telematics insurance is to give your insurer a more accurate picture of how safely you drive, so they can give you a personalized premium cost that closely reflects your driving.
How does telematics insurance work?
Telematics insurance works using advanced technology to assess your driving, providing this data to your insurer.
The technology uses telecommunications (phone lines, cables, cellular networks) and informatics (computer systems that structure data) to transmit the data from your car to your insurance provider for evaluation.
To do this, most insurers provide a computer chip thats installed in your car windshield. However, some insurers do this through an application thats downloaded onto your mobile device instead.
If you choose the latter, its important that you have your location services switched on at all times, both inside and outside of your vehicle.
To analyze your driving, both forms of telematics will use motion sensors and global positioning system (GPS) to accurately register every movement whilst you drive and also track this against your positioning on the road.
This information is then sent to your insurer.
How does telematics insurance give you personalized insurance premiums?
The main benefit of telematics insurance is that you receive personalized insurance premiums as a result of your unique driving being analyzed. Here are some of the ways this is achieved with the technology:
- Measuring your driving speeds This measures how fast youre driving on different roads, and compares it to the legal limit of your location. If youre driving too fast, the system will pick it up.
- Recording how well you maneuver your car The technology can also analyze how well you execute a range of different car maneuvers. For example, this could be how safely youre turning your vehicle around corners (i.e., at what speeds). Also, it can asses whether youre colliding with anything whilst parking.
- Assessing your braking The software will be able to tell how well youre stopping the car in time. If, for instance, you get distracted and need to brake harshly at the last minute, the system will pick up on this.
- Seeing if you use any devices on the move Its important to give the road your full attention when driving, so your telematics will register if youre using your phone whilst on the move.
- Tracking the times of day you drive Its well regarded that later times in the day pose more of a risk to drivers, so the system will keep track of the specific times of the day you drive your car.
With all this essential data, your insurer gets a full picture of your driving behavior, and as a result, tailors your premiums to reflect this.
The safer you drive, the cheaper your premiums will be!