Telematics 101: What you need to know
Collecting information about your driving habits has been a trend for several years to help insurance providers offer lower premiums to safe drivers. They do this through tools called “telematics” and providers typically use this information to offer safe driving rewards or savings on your current insurance premium.
Telematics devices come in a few different forms. Initially, insurance providers would ask you to install a device in your vehicle’s onboard diagnostic port underneath your dashboard. Now, with more advanced cell phone technology, many offer the ability to install an app on your phone to help track your driving habits. Some vehicles actually have telematics already installed in the vehicle that your insurance provider can use.
Many insurance providers have “gamified” your telematics experience to help encourage safer driving habits. With real-time feedback, you’re given the opportunity to improve your safe driving habits and potentially save more on your auto insurance premium after your monitoring period is completed.
Driving habits that providers look for when determining your risk include:
- How often you hard brake when coming to a stop
- How quickly you accelerate from a stop
- How many miles a day you are driving and;
- What time of day you’re driving
If you do decide to enroll in a telematics program, remember that you are authorizing your car, device or app to regularly send data to your insurance company about your driving habits.
Got questions? We have all the answers to help determine the best telematics program for you. We’re also available to review your policy for additional discounts and ensure your coverage levels are appropriate for your needs. That way, in the event of an accident or other incident, your experience is smooth sailing!
Contact the First Tech Insurance Services agent in your area or call 855.855.8805 to get started.