Cars are becoming more technical and connected every year, with most new models offering at least some type of digital convenience and safety features.
These connectivity features are known by carmakers and auto insurance companies as digital telematics and are designed to a variety of things.
Helping both you and your auto insurance agency, telematics features can keep driving costs down for everyone.
What Is Digital Telematics?
Digital telematics in your car is essentially any digital feature that is wirelessly connected to the internet so it can transfer data to and from the vehicle.
Initially developed to improve driver safety and convenience, some car insurance companies are now using telematics as part of their incentives to help drivers reduce claims and keep premiums affordable.
The most basic examples of automotive telematics are your in-car WiFi connection, GPS and mapping service, and other connected features such as driver assistance technology.
As the use of telematics continues to grow, expect more insurance companies to offer this type of program.
How Are Auto Insurers Using Telematics?
Today’s telematics used by auto insurers to provide them with vehicle information are all wireless, receiving data from the vehicle’s on-board computer and then transmitting it via an app loaded onto the driver’s connected smartphone.
Car insurance companies receive data such as vehicle speed, miles driven, vehicle location, and even finer details like driver braking style, vehicle problems, and much more.
Using this valuable information, insurers are able to identify both good drivers and problem drivers.
This little factor has become a good incentive for drivers to be more careful overall.
How Can On-Board Telematics Benefit Drivers?
Before any drivers think that digital automotive telematics is simply about catching the bad drivers, it’s important to look at both sides of the idea to understand the benefit he or she can receive.
The goal in using this technology is to reduce accidents and lower costs to insurers auto insurance premiums for drivers, which is easier to do when insurers have a firsthand idea of how their customers actually drive.
Premiums can be more accurately issued to offer things like low-mileage and local driving discounts, safe driver discounts, and more.
Conversely, drivers that do the opposite by speeding, driving dangerously, or driving many miles will also have premiums adjusted to more accurately represent the insurance risk they pose.
Ideally, instead of seeing raised premiums, companies hope that the monitoring can help drivers realize and correct negative habits to prevent accidents and earn lower premiums.
Telematics - At Your Auto Insurance Company!
Although digital telematics have been around for quite a while at this point, it is an emerging idea for auto insurers who are just beginning to adopt it.
As more companies begin using this technology, many drivers can look for it coming soon from their insurer.
Using telematics, drivers will drive safer, insurers will see fewer accident claims, and car insurance premiums might lower for the good drivers out there who deserve a break!
