There’s a hefty amount to consider when finding the right car insurance, and it can be tricky to find the most appropriate policy with the best premiums.
This can be even more complicated for drivers of certain demographics who are statically considered more likely to have an accident – like new or young drivers, for example.
However, one of the best policies to consider is insurance with telematics.
When you take out this policy, such as car insurance with Lemonade Car, for example, you can get an insurance that’s customized for you and pay based on how much and how well you actually drive, with the help of telematics.
Read on to find out how.
What is telematics car insurance?
Telematics insurance is a specific type of policy that incorporates expert technology to analyze driving behaviors, and then uses this data to tailor your premiums.
It does this using telecommunications and informatics, which is essentially connections through things like phone, cable, or cellular networks, and a system to structure this data.
Your technology is usually fitted into your vehicle through things like installations, or software downloaded onto your mobile device.
As you go about your usual driving, the telematics will provide data to your insurer surrounding your driving behaviour. This can include:
- Obeying speed limits – The data will show whether you’re speeding on roads where you shouldn’t, or correctly obeying speed limits.
- Paying attention – In instances where you aren’t paying attention to the roads and have to break suddenly and harshly, your telematics will pick this up.
- Maneuver safety – Data will be provided on how safely you execute manoeuvres, such as the speed at which you take turns.
- How often you drive – Your telematics can also report on your mileage and how frequently you drive your car.
By analyzing this data, your insurer will have a much clearer picture of your behaviours and safety as a driver. In turn, they can adjust your premium to align with your driving – safer driving results in lower chances of an accident, and thus enables lower premiums.
What are the benefits of using telematics insurance policy?
There are a wide range of benefits to telematics insurance. This includes, but is not limited to:
- Insurance customized for you
One of the prime advantages of using telematics insurance is that you have an insurance policy which is individually customized for you as a driver.
Quite often, statistical data has created many assumptions for drivers of certain demographics. For younger or newly passed drivers, there’s a universal assumption that you’re a less safe driver, and therefore are more likely to be involved in an accident.
As a result, you’ll find much higher premiums for these groups.
However, telematics policies ensure that no inaccurate assumptions are made about your driving behaviours, and only meaningful data is used as evidence to adjust your premiums.
If you’re a safe driver, this can be clearly reflected in your telematics data and your insurer can lower your premiums as a result.
- Helpful GPS tracking
Since telematics uses technology to track your driver behavior, it also means that you often have clear global positioning system (GPS) tracking for your vehicle.
This will come in handy in the event of any incidents, which could be a car breakdown far from your home, or a collision with another vehicle.
With accurate GPS from your telematics, you can get roadside assistance sent to you much quicker, and they’ll also have a more exact pinpoint of your location, so they can arrive more efficiently.
This not only helps you save time during these incidents, but also helps you remain safer with a constant tracking of your location.
Telematics insurance takes assumptions and generalisations out of the picture, and gives you an insurance policy that’s customized to your specific driving behaviours. It’s time to find the right insurance policy for you, now.