As car insurance rates are on the rise, telematics can help you save money on your car insurance premiums.

What is telematics?
Telematics uses wireless technology to monitor and troubleshoot a wide variety of vehicle performance information in real time. It makes possible many common and useful applications you may already be using such as onboard GPS, OnStar, and other security features. This technology can also help you save on auto insurance by allowing you to prove that you’re a safe, conscientious driver who deserves a discount.

How does telematics work?
Depending on your insurance carrier and where you live, telematics programs use either a mobile app or a small device that plugs into a port on your car’s dashboard. Either way, the tool is easy to set up, use, and monitor. Once it’s installed, your insurance carrier tracks your driving happens for a specific timeframe, typically 90 days. Carriers are monitoring driving factors such as braking, acceleration, nighttime driving, and total miles driven. However, telematics programs do not track where you drive or record other personal information.

Following the review period, your insurance carrier will rate your driving and will offer you a discount on your premium or some sort of safe-driving reward. Some programs even give you a 5% discount just for participating. Depending on your carriers program, you could save up to 30% on your premium. One participating in the telematics program, some carriers apply the discount for the life of your policy, meaning there’s no need to track your driving again in the future. Think of it as a permanent discount you earned for having good driving habits.

What are the benefits of participating in a telematics program?
Personalized Driving Feedback
Telematics data generally provides real-time information about your mileage and driving habits. For instance, a telematics device or app records the number of miles you drive, your speed, and how quickly you brake. This technology can also analyze the time of day when you drive. This data can help you become more aware of your driving habits, so you can be a safer driver.

Opting into a program may also provide you with an opportunity for cost savings. Some telematics data will likely incorporate your personalized driving behaviors into your insurance rating, which means if you avoid risky driving behaviors, you may save more on your auto premium compared to someone who is a riskier driver, according to the III. This can give you greater control over your auto insurance costs.

Safe-Driving Rewards or Car Insurance Savings
You may be able to get discounts and rewards just for signing up for a telematics program, as well as earn additional rewards later for being a safe driver. For instance, drivers may be rewarded for avoiding risks such as hard stops, traveling late at night or speeding.

Contact us today to learn about the telematics program available from your insurance carrier.