Big data is revolutionizing every aspect of our lives. So why not driving, too? Telematics solutions are an exciting new way for auto insurance companies to reveal habits about our driving. Whether you’re a safe driver or fast driver, whether you have a short commute or a long commute, all these things can be factored in when looking at your auto insurance premiums. Here’s everything you need to know about how data and insurance combine for better service and better discounts.
Telematics is the Collection of Driving Data Through a Device in Your Car
The device can be something as complex as something that plugs directly into your car, or it can be something as simple as just your smartphone. What’s important is that the telematics solution is going to log information about how you’re driving. Your speed, the way you maneuver, how you brake, how far you drive, and where you drive will all be logged. This will give your auto insurance company (and yourself) a very good overview.
Telematics Provides Better, More Granular Results When It Comes to Your Driving Safety
Sometimes people can have unfairly high rates because they are in a demographic known for being a bad driver. A woman who is 65 is going to be in a “high-risk” bracket because older people tend to get into more accidents. But a responsible woman who has never had any accidents shouldn’t have higher rates! Telematics shows that you’re a good driver regardless of your demographics, and allows for safe driver discounts.
Telematics Is in Use by Many of the Major Auto Insurance Chains
Safeco, Nationwide, and State Farm are all auto insurance chains that offer telematics. While you aren’t required to use telematics, telematics can help you achieve better rates. These large, national chains are using it because it has proven to be more effective not just for drivers but auto insurance companies. Auto companies can deliver more accurate rates and also determine the products and services their customers need.
Telematics Can Help You Improve Your Driving
You might not realize that you’re maneuvering too sharply, or you’re driving too fast. You might not even realize how much you’re driving every day. Telematics helps you improve your driving so that even if you don’t deserve a safe driver discount today, you might deserve it tomorrow. And don’t worry, you won’t be “docked points” for being a riskier driver, you just aren’t going to get any discounts related to it.
Telematics is Getting Better and More Accurate Year by Year
Like any data-related, technological solution, telematics is getting better over time. And that means that you’re going to have better, more accurate rates moving forward, too. Getting in on telematics now can save you some money. Telematics in the future may be used to create complete, custom insurance products that are designed specifically for you.
Overall, telematics is something that auto insurance companies are certainly going to be moving toward. And it’s a great thing for both auto insurance companies and drivers. For more information, contact the professionals at G&L Insurance today.
