Finding the best ways to save money on your car insurance is one of the most sought-after aspects of driving.
That being said, it can be a challenge for both experienced and new drivers alike.
However, there’s one excellent way that you can receive the most accurate and cost-efficient premiums for your vehicle – telematics car insurance.
Read on to learn what car telematics insurance is and how it can be great for helping you save money on your policy.
What is telematics car insurance?
Telematics insurance is a specific type of car insurance that uses innovative technology to give you accurate premiums which are suited to your unique driving behaviors.
Telematics is a technology that involves telecommunication – cellular connection, cables, and phone lines – to transmit data. When it comes to your telematics insurance, this data revolves around your driving habits.
Your telematics technology is usually inserted in chip form into your car, such as in the windshield, or in the form of an app on your phone – like Lemonade Car, car insurance that uses telematics to help fairly price your policy, for example.
This is where all the data is collected so it can be transmitted to your insurer.
The data can establish things such as:
- How well you carry out car maneuvers
- If you’re abiding by speed limits
- If you’re stopping safely and in time
- How often you drive your car
This is then used to reflect how safe and responsible you are as a driver. Naturally, the safer your driving is, the less likely you are to have an accident.
Your insurer will take this into account and give you a premium that more accurately matches your safety as a driver.
How can telematics insurance save you money?
Telematics insurance can save you money on your car insurance in a variety of ways, including:
- Insurance tailored to you
One of the biggest benefits of telematics insurance is that it gives you insurance premiums which are tailored specifically to your unique driving behavior.
Quite often, specific demographics are labelled as being more unsafe with driving, due to certain statistics on the likelihood of certain groups having accidents. Usually, this applies to young drivers or those who’ve just gained their license. .
As a result, these premiums are likely to be higher as a standard.
However, with telematics, your insurer will be able to see exactly how well you drive and base the premiums off that, rather than any generic assumptions based on your age or experience.
This means safer drivers can save more money, regardless of their demographic.
- Location-based software
Telematics insurance also uses location-based software, which means your car location is constantly tracked – as long as you have location services enabled on your cell.
Therefore, your insurer will be able to see exactly how often you’re driving your car, including average journey length, frequency, etc.
It’s regarded by most insurers that the more you drive your car, the more likely you are to have an accident, as your prolonged exposure on the roads makes more time for a potential accident to occur.
Therefore, regular insurers could give you higher premium based on the assumption of how often you might drive, when in reality you don’t drive nearly as frequently as predicted.
With telematics, you’ll have insurance premiums tailored to your exact driving habits, meaning you’ll have an insurance cost that accurately reflects how often your drive – saving unnecessary money from unrealistic assumptions.
—
Telematics insurance is key for not only saving money on your car insurance, but giving you the easiest and most reasonable manner of displaying your unique driving safety to your insurers.
