According to the National Highway Traffic Safety Administration, the number of speeding fatalities and general car crashes has continued to rise over the years. Both the government and insurance companies are looking for ways to reduce these alarming numbers and to keep drivers safe on the road. Most insurance providers use multiple variables to figure out your auto insurance rates, and telematics now plays a crucial role.
Here's an in-depth look at how telematics can affect your auto insurance rates.
Companies use different devices and methods to obtain your driving data. Some companies prefer to track data through your mobile phone, while others prefer to install a device on your car that will record data as you travel. Telematics systems are generally wireless. Popular devices include apps, Bluetooth, flash connectors, and OEM systems. Insurance companies use apps to track data through smartphone sensors. The app sends the data from your phone to a third party server. The apps measure speed, acceleration, and braking. Bluetooth devices use your phone's network to send data. Flash connectors are plug-and-play devices that transmit your driving behavior, while OEM systems are built into the vehicle. Popular systems include OnStar and mbrace.
Different telematics systems measure different functions based on the complexity of the device. Insurers recognize that there is concern among some drivers about a lack of privacy. Most systems do not allow insurance companies to see when, where, and how you are driving. This information is captured by a third party and scrubbed before sending performance information to the insurance company. Privacy concerns are continuing to be address by insurance companies.
If you have an established history of good driving, you might be required to pay lower premiums. Insurance companies use telematics to measure driving traits in addition to your address and other information to better tailer your premium to you sprecifically.
You will receive timely reports and feedback based on the data generated from the system. Telematics can help you improve your driving habits and minimize the chances of an accident.
Telematics allows insurance companies to locate direct risks based on your driving traits quickly. Insurers can use the data to inform you of things to improve to reduce your chances of an accident. The data also makes it easy for companies to gain an understanding of a particular market.
Insurance providers often use the system to build a strong database for future projections. It also makes it easier for them to identify safe and unsafe drivers.
Fleet management systems enjoy telematics because it helps them identify the amount of maintenance required, give feedback to the drivers, and manage fuel consumption. Analysts point out that the creation of connected cars will allow companies to enhance their business. As electric vehicles start to dominate the market, telematics will become even more important in the days to come.
Research shows that telematics is beneficial for insurance companies, manufacturers, and fleet managers. As a driver, you can use the system to pay lower premiums, thus cutting down your auto insurance costs. The technology also helps you stay safe on the road. If you have any questions about how new technological advancements may impact your insurance coverage, the team at Reata Insurance Group is here to assist you. We can help you secure reliable auto insurance coverage in Texas today!
