Telematics might be a new word for you, but if you think that you’re a safe driver, then telematics might be able to save you some hard earned cash. Ready to get to saving? Then here’s everything you need to know about telematics insurance!
Um… What are Telematics?
Telematics is actually very simple. In basic terms telematics just refers to any device that’s attached to your car that can measure and evaluate your driving. Sometimes these devices are also referred to as black boxes or car tracking devices. When one of these devices is fitted to your vehicle then all kinds of aspects of your driving can be measured, such as speed, how long you’ve been driving, where you are, and even skills such as how smoothly you brake and accelerate, or how well you take corners. Devices can be fitted to most existing vehicles.
So, How Do Telematics Save Me Cash?
Aha, great question. Here’s the deal. Some insurance companies offer special policies to drivers that agree to have a car tracking device attached to their vehicle. These policies are sometimes called pay as you drive policies, or black box car insurance. Insurance telematics basically will allow you to save cash because you will pay premiums based on how risky your own driving is. Traditionally, insurance companies base premiums on statistics, so you pay the same premiums as other people in your area, of your age, and who have been driving for the same amount of time as you (you can read about what effects the cost of car insurance quotes here). But if you’re a better than average driver, then those premiums might be too high for you, which is where telematics comes in. With telematics, your premiums can reflect the way YOU drive, rather than how statistics say you should drive…
The Big Benefits of Telematics
By far the biggest benefit of telematics is that whole money saving issue, and this effects mostly people who are considered to be “high risk” groups. For example, young, male drivers who have new licenses are often seen as a big risk for insurance companies, and thus have high insurance premiums. But if you’re not the average young, new, male driver, by having a device attached to your vehicle that proves you’re a good driver, you can pay lower premiums. Awesome.
Another benefit of telematics though is that quite often telematics insurance policies also come with anti-theft tracking. This is a system such as Car Track, that allows companies to track where your vehicle is. Your car gets stolen? Anti-theft tracking will find out where your vehicle is, and hopefully even get it returned to you!
Finally, you may also be able to access your online driving record, since many companies allow you to do this. Knowing where you’ve driven, how long it took, and how many kilometres you’ve covered can be pretty interesting! But this info can also be useful for those that drive for business, for example, and who need to keep track of business driving expenses.
What About the Downsides?
Okay, nothing is perfect, and there are a couple of downsides to using telematics on your vehicle. One of these is that you might not save money at all. Hypothetically, you could be a worse than average driver (although we’re sure you’re not!), which could mean that your insurance premiums go UP rather than down. You’re going to have to drive very sensibly in order to shave money off those monthly premiums…
Then there’s the problem of privacy. In the modern world it seems like it’s becoming increasingly difficult to have any form of privacy, and telematics won’t help with this. In theory, having telematics fitted to your vehicle will mean that someone, somewhere always knows where your car is. It’s unclear just how much of a problem this may be in the future, and whilst it’s unlikely that private parties (such as employers or spouses) will be able to access such information, it’s possible that public parties (such as the police) will. You’re going to have to keep this in mind if you’re thinking about getting telematics for your car…
Bottom Line Time
So, is getting a telematics device fitted to your car worth it? For some people yes, particularly new drivers, young drivers, and those that have low mileage (since insurance companies often charge less for people who don’t drive very much). That’s as long, of course, as you’re a good driver! The good news is that it takes very little time to fit a telematics device, and that you can potentially save a fair amount of money. Think you’re a good driver? Then check out telematics to find out the truth!
Main Subject: Telematics
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