How Telematics Insurance Has Revolutionized Driving

There are many different insurance policies available, with each offering something different for you and your car.

However, one particular insurance type which is revolutionizing modern driving, is telematics insurance – a policy which is definitely worth considering for your car.

In light of this, this article will take you through what telematics insurance is and all the different ways it’s changing driving for the better.

Read below to learn and find out more on car telematics for insurance.

What is telematics insurance?

Telematics insurance is a particular type of insurance policy that uses expert technology to track your driving, and then uses this to adjust your insurance premiums.

For telematics to work you need to have technology installed into your car, which is usually done using a special chip in your vehicle, or software installed on your mobile device through an app, for example.

This technology uses telecommunications (phone lines, cable, and cellular connections), and informatics (systems for structuring data), to provide extensive data to your insurer, regarding your driving behaviour.

The data can analyze a variety of different things, including – how well you obey speed limits, the safety of your vehicle stopping, how correctly you carry out maneuvers, and much more.

Once this data is delivered to your insurer, they’ll be able to more accurately observe your standard of driving and see how likely you are to have accidents – the safer you drive, the less likely this is.

As a result, your insurer can adjust your premiums to match the data collected by your telematics software. If you’re driving safely, your chances of an accident are much slimmer and you can therefore benefit from lowered premiums. 

How has telematics insurance revolutionized driving?

Since the introduction of telematics insurance, and the way it’s evolved over recent years, it’s significantly revolutionized driving and car insurance. It’s achieved this in many ways, including:

• Accurately tailored premiums for drivers

Telematics software is able to provide drivers with insurance premiums that are specifically tailored to their driving behaviours, as opposed to statistics or generalizations.

For most insurers, there are much higher premiums given to drivers who fit into certain statistical demographics. 

These are usually young drivers or those who’ve recently passed their test. This is simply because they’re, on average, more likely to be involved in an accident – hence the higher premiums.

However, telematics takes assumptions out of the picture, and allows insurers to base their premiums off of clear and accurate data surrounding your specific driving behavior.

This way, you can get a premium that’s fairly assessed against your driving, not that which is expected of you from certain statistics.

• Location-based technology for driver safety

Another way that telematics insurance is revolutionizing driving is through its location-based technology.

Using global positioning system (GPS), telematics will continuously track your vehicle location, and this is important when certain driver situations arise.

For instance, you might find yourself involved in a collision with another vehicle, or you might break down somewhere. In cases such as this, it’s important to get roadside assistance sent out to you as efficiently as possible.

With telematics providing an accurate pinpoint of your location, your assistance can be sent out much quicker, and to the right location. This is key for both your safety, and that of those involved in the incident.

• Meaningful insights to improve overall driving

Becoming a better driver is something that every vehicle owner should strive for, regardless of your experience level.

When you have telematics insurance, your software can offer extensive insights into your driving – such as those mentioned earlier on.

With this data, you’ll know exactly how well you’re driving, as well as all the different areas where you can potentially improve. You may need to be more cautious of your speed in certain areas, for example.

In response, you can adjust your driving accordingly, and not only become a safer driver on the road, but give more reason for your insurance premium to be lowered.

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As it continuous to revolutionize driving, why not take out your own telematics insurance policy, and benefit from all it can bring to your driving.?