Insurance companies have typically based their premiums on the demographics and past histories of drivers. If you are 25 or under, history has shown that you belong in a group of drivers that is more reckless than drivers over the age of 25 (even if you have a perfect driver record and do your best to apply by all traffic laws), and you will be more likely than an older driver to either file an insurance claim yourself, or have a claim filed against you. Modern technology is changing the way insurance companies can determine your driving abilities, and this change can directly affect your pocket book. Here is how telematics technology lets an insurance company know how careful of a driver you really are when you are out on the road in your car.
How Telematics Work
Telematics technology uses the computer and electronic information generated from your car to collect data that insurance companies will use to determine how well you drive. The data includes the speeds you drive, how hard you put on the brakes, how far you normally drive, and how often you use your car (all things an insurance company usually asks you when filling out an application for car insurance). They can even measure how fast you were going in case you are involved in a car accident.
The data is collected by the computer inside your car and is transmitted to the insurance company via a kit that can be installed into your car, or through your smart phone. You will have to download an app if you are going to use your smart phone.
Telematics and Car Accidents
Telematics can alert your insurance company if you are in a serious car accident. The device can measure the sudden deceleration of your car (called G-forces) and send an emergency crew (thanks to the built-in GPS system) to your location if you are knocked unconscious - this is useful if you are involved in a single-car crash in a remote area. This action can help to minimize the amount of physical damage you and your passengers might suffer if medical attention was delayed – which not only protects you, but could mean lower medical costs the insurance company might have to cover.
How Telematics Benefits You
The end result of all this information is the insurance company will base your premium on the actual data you generate while you are using your car. The premium of a young person is not tied to the behaviors of others in their age group – it is based on how you actually drive.
If you are a safe driver who feels you are being charged too much for car insurance, you should ask an insurance company like Breitweiser Insurance Services if they use telematics technology to help you reduce the amount your paying for car insurance.