Insurance Company Starting To Use Telematics? What Insurance Telematics Is And The Benefits If Offers You
If your insurance company sent out a letter telling you that they are going to start using telematics you may be confused. If so, below is information about what insurance telematics is, as well as the many benefits it will offer you.
Insurance Telematics
Insurance telematics is also known as usage based insurance. With this, your insurance company will have your car fitted with a small telematics box, which is commonly called a black box. Once installed, the box measures how you drive, such as how fast you are going, how many times you accelerate, how long you idle, if your airbag is deployed, if you go at high speeds around sharp turns, and more. It also knows how often you drive and where you are driving.
The box is fitted with a SIM card and all information is recorded to this card. The SIM card then transfers the information to the insurance company so the insurance company can determine how safely you drive.
Benefits of Insurance Telematics
Even though insurance telematics benefits the insurance company it also benefits you as the driver.
One main benefit is you may be offered a lowered insurance premium. For example, if your telematics box shows the insurance company that you are a very good driver, this reduces the chances of you being in an accident. Also, if you do not drive your car a lot, the insurance company may lower your premiums This is because the less you drive the less of a chance you have to be in an accident.
Telematics insurance can also help you if your car is stolen. For example, the little black box can show your insurance company, as well as police, where your car is currently located. Also, if you are in a wreck and are unconscious your family may be worried about you. If so, they can contact authorities who can then easily find you if you have a little black box installed in your car.
If you have young drivers in your family this may not be good for them, but it benefits you. This is because you will know if they speed, as well as how often they drive. For example, they may drive the car after curfew or when they are not allowed to. This can help keep your young driver safer.
Talk with your insurance company to learn much more about insurance telematics and the benefits it offers you.