You may not have heard of the name telematics, but it’s those tracking devices car insurance companies are using to track drivers. How do they work, and what do they do for the driver? Keep reading to learn more.
What Are Insurance Companies Tracking?
Insurance companies track a variety of data to create a profile of what kind of driver you are. This lets them better estimate your chances of getting into an accident and filing a claim than their traditional statistical profiles.
How you brake tells a couple of things. First, do you brake at the last second? If so, you have a higher chance of getting involved in a rear-end collision either by you not stopping in time or the driver behind you not having time to stop? Second, how often do you brake hard to avoid an accident? Even if the braking isn’t your fault, it could still show that you’re driving in riskier areas than other drivers.
Do you fly out of a stop or increase your speed gradually? Hard acceleration is often a predictor of other unsafe driving habits.
Excessive speeding is obviously unsafe. However, even speeding just a little over the limit could change an accident from not your fault to you getting assigned some of the fault. That increases the chances you will file a claim.
How you take turns is also an indication of your driving habits. Do you go fast and have a risk of losing control or hitting someone ahead? Or do you go slow and steady?
Where You Drive
Some roads and areas have more accidents than others. If you have to drive there for work, it’s unavoidable, but you’re still riskier to the insurance company than someone who only drives on quiet country roads.
When You Drive
When you drive is similar to where you drive. Heavy rush hour traffic and late-night driving usually come with higher chances of an accident. Driving at less busy times means less traffic to get into an accident with possibly.
Insurance companies have long offered use-based discounts. If you have a chance of getting into an accident once every 100,000 miles, your risk of an accident during your policy varies based on whether it takes you a year or a decade to drive that far. In addition, insurance companies are now offering pay-per-mile options to match your insurance premiums to exactly how much you drive.
What Does Telematics Do For You?
Telematics usually comes with three benefits for drivers.
- Many insurance companies offer a discount just for joining the program.
- If you’re a safe driver, your insurance rates could go down even more when you complete the program.
- If you drive less or only at less risky times, you can pay less instead of getting grouped together with riskier drivers.
Talk to Your Insurance Agent
If you want to learn more about telematics, your independent insurance agent can help. Contact Awesome Insurance Consultants now with your questions or to learn about the available programs.