Are you a safe driver? Ready to prove it and save money?! Telematics is a tracking system that uses your driving habits and mileage to give you a personalized profile. Insurance companies have been using telematics for years to save safe drivers money on their car insurance. Your insurance policy is then based on that information. Let’s dig into it!
How does Telematics Systems work?
The data that is collected from a telematics system is usually from a small device provided by your insurance agent, a mobile app, or your car’s manufacturer. If you are using a device, it is plugged into your car’s onboard diagnostic port, under your dashboard. If your car is older than 1996, it might not have the port and you will need to use alternative methods.
When you turn the tracking device/app on, your driving information will be sent back to your insurer so that they can adjust your plan/rate based on your driving habits and/or mileage.
Why Use Telematics?
Is it worth having ANOTHER app tracking my every move?
Here are some reasons you might consider the telematics system!
Savings and Rewards
You could save with this program just for signing up. When you drive safely, you’ll also be rewarded with better rates. Avoiding behaviors such as traveling late, speeding, using your phone while driving, and making hard stops can potentially save you on your car insurance bill. In the long run, if your information is satisfactory, your insurance rating can be improved upon. This will save you money on your auto premium, which gives you more control over the cost of your future rates.
Get Personalized Feedback
Telematic systems provide real-time info about your driving habits. You will be recorded on how many miles you drive, drive time of day, speed, hard stops, and possibly more driving behaviors. This information can be useful if you are looking to become a more aware and better driver.
Insurance Rates Based on Mileage
If you are someone who does not drive often, which is a lot more people nowadays, this program could be for you! During the pandemic, a lot of us became remote workers and communicators. By not having to commute everywhere, we’ve saved a lot on gas, but not on insurance. This program can help you change that narrative for low-mileage drivers.
Who can also save from Mileage-Tracking Insurance?
- City Residents that Rely Mostly on Public Transportation
- Anyone that Drives Less than 35 Miles in a Day
- Retirees
Who Benefits from Telematics?
Telematics works great for many people, but not so great for others. Here is a breakdown of who benefits the most and who might not.
Telematics is great for those who might be charged above average premiums, BUT are safe drivers such as…
- Drivers with Low Credit Scores
- Drivers who Live in a High-Crime/Accident-Prone Area
- Young Drivers
Telematics would not work so great for…
- Drivers who are Accident-Prone
- Those that are Worried about Being Tracked
- Drivers who Struggle to Stay Off their Phones
- Drivers that have Bad Driving Habits such as Speeding or Making Hard Stops
- Those that Must Drive Late at Night or During Rush Hour
Bottom Line for Using Telematics
We hope we gave you something to think about in terms of this interesting program! Keep in mind that not all systems work the same and not all insurance companies will monitor the same info. This is something that will take some research!
Interested in this program, but don’t have time to do the research? Contact the insurance agents at Greg Fay today! We’ll sit down with you to discuss exactly what you need and do the research to find you the best program possible to fit YOU!
