The car insurance can feel like a minefield, especially if you are new to it all. With variations of different types of insurance adding up, one that you may want to learn about in particular is telematics car insurance. Learning how telematics insurance works for your car has never been easier, especially with this quick guide to defining what this type of insurance actually is.
Telematics is used to describe how insurance companies gain data from telecommunications, like phone lines and informatics, using computer systems. This is all tracked using location-based tech, giving you fairly priced insurance costs. The data is then used to track your driving behavior and your safety, where you can then be offered potential discounts for driving well.
What data will be collected?
It’s great to know what telematics insurance is, but it’s extremely useful to know what data is collected. This can help you to be a safe driver, which will lower your insurance costs. You will be told what will be measured, but here are just a couple of things to look out for. One of the main things that will be tracked is your speed. It will track whether you stay inside the designated speed limits and if you ever exceed them. It can also pick up on your driving characteristics, like how you steer and how you brake. It becomes easy to pick up bad habits when driving, so telematics insurance can help you to stop these habits before they become part of your everyday driving routine.
How will telematics car insurance benefit you?
With location services allowed on your phone, you can then benefit from everything that this insurance can provide you with. By opting for telematics insurance, you can reap the rewards of lower premiums. This is dependent on how well you drive, encouraging safe driving. Also, if you don’t drive too often, your insurer will take that into account when providing you with insurance costs. Someone who drives more has a higher likelihood of being involved in an accident, so insurance would be higher, in this case. Aiming to be more eco-friendly, telematics can track your mileage to then plant trees based on how much you drive. This aims to help you shrink your carbon footprint, becoming gradually more eco-friendly.
Insurance policies and what to look out for
With insurance policies being tailored to you, there are a few things to look out for when investing in car telematics insurance. Some age restrictions can be based on if you’re a new, young driver, as they are more likely to get into accidents, due to less experience on the roads.
There may be restrictions based on what times you can drive, which will have set penalties if you drive outside of these times. These are often due to nighttime driving being more unsafe, as it is harder to see, therefore resulting in higher accident possibilities. This promotes safer driving and also lowers your insurance costs.