When it comes to your car insurance, there’s really only one thing most drivers want to know:
How can you get cheaper insurance premiums?
Fortunately for you, we may have found the answer to this question, and it lies within telematics car insurance.
To give you a clearer idea of how this is the case, we’ve put together this guide to telematics insurance, showing you – what it is, how it works, and how it can help you get cheaper insurance premiums.
Read on to find out more.
What is telematics insurance?
Telematics insurance is a unique policy that enables you to get more accurate prices for your insurance premiums, through a close analysis of your driving.
This insurance policy uses advanced technology to analyze your driving behavior, so that it can be clearly shown to your insurance provider, helping them gain an accurate picture of your safety as a driver. As a result, they can then adjust your premium prices.
If you’re interested in securing your quote for car insurance that prices your policy based on how much and how well you drive, explore more on how telematics works at Lemonade Car.
How does telematics insurance work?
The key component in your telematics insurance policy is the advanced technology used to analyze how well you drive.
This technology firstly needs to be installed in your car, before collecting any data on your driving. For most drivers, this will involve a special chip being installed in your car windshield, but more advanced technology has allowed for telematics to be installed as an app on your phone.
Your telematics device – whether the chip or on your phone app – will use motion sensors and global positioning system (GPS) software to pick up the most intricate movements of your car. It can also track your exact location on any road you’re on.
This will help it accurately assess various aspects of your driving, to give a clear indication of how safe you are on the road.
The system will then use telecommunications (cellular networks, cables, phone lines) and informatics (computer systems) to transmit crucial data on your driving to your insurance provider.
As a result, your insurer can then assess your driving ability, and get an accurate idea of how likely you are to be involved in an accident.
How can telematics help you get cheaper insurance premiums?
The main benefit of telematics insurance is that you can get cheaper insurance premiums for driving safely on the road.
If your telematics system can reflect your safety as a driver to your insurer, they’ll know you’re less likely to be having accidents on the road, and consequently, can lower your premiums.
So, how can you show this?
There are many key things analyzed by your software, and you need to make sure each one is showing safe and responsible driving. This includes:
- Your driving speed – Make sure you’re abiding by the speed limits for every road you’re on, as the system will pick this up.
- How well you maneuver the car – The technology will know how well you pull off your maneuvers. This means, turning corners slowly and safely, and don’t bump your car when parking.
- If you’re stopping the car safely – The system can also measure how effectively you break. Don’t brake harshly at the last minute, but instead do it gradually and in good time.
- The times of day you often drive – Driving late at night is more dangerous, so make sure your system can see that you’re driving at more visible times of the day.
- Whether you use your phone – Never use your phone whilst driving, under any circumstance. The technology will be able to tell, even if you just check a text.
If you ensure each of these driving aspects is executed as safely as possible, your insurer can then adjust your premiums accordingly.
Safer driving, equals cheaper insurance premiums.
