With telematics insurance becoming more and more popular, much like anything, there are positives and limitations. This article will explain each of these in detail, alongside outlining how the technology works, as well as how and why you should get telematics for your car.
Keep reading to find out more!
What is telematic insurance?
Telematics is the joining of two sciences; telecommunications and informatics. By monitoring vehicles and equipment by using Global Positioning Systems (GPS), it assesses the movements of a vehicle on a computerized map.
This allows insurance companies to collect data from telecommunications (phonelines, cables, cellular networks). With this data, they can track driver’s road behavior and safety.
What are the pros?
There are a vast number of positives to consider, this section will explain them in depth, to give you a realistic understanding of each.
Different models – There are several contrasting models of telematics insurance, but most of them are based on how many miles you drive, or how safely you travel. Having these options is essential, as every single driver is different.
Encourages safe driving – This is an essential point to make. As customers are aware the insurance company can see their driving, you’ll likely drive with more caution. Particularly if you have a dash-cam installed, as insurers can visually see how you are driving.
Saving money – Having telematics installed in your car can save you money in the long run. If you continue to drive safely and with caution, you could see discounted insurance prices for the future. So being a good driver has a lot of benefits!
Vehicle maintenance – The engine data collected helps to identify any engine faults or prevent future maintenance problems.
What are the cons?
There are some limitations to using telematics, not many, but it’s only fair to tell you about them!
Data sharing – Despite modern technology sharing lots of information online; some drivers are reluctant to want to share information. Some data can be considered private to those concerned about privacy. However, insurance companies are combating this by limiting the amount of data they take from the telematics system.
Costs – If you do not already have telematics insurance equipment or dash cameras, this can be an expensive start-up cost, although most do already have this equipment available. With dashcams becoming more popular, they are now easy to source and install in a vehicle.
Installation – The installation of a telematics box can take just 15 minutes, or up to a day! In order for the system to work effectively, you’ll need to make sure it’s installed correctly, and in the right place – or it could interfere with other parts of the vehicles electrics. Despite this, some providers may only need you do download an app on your phone!
We hope this article has helped you understand both the pros and cons of telematics insurance. Now you can decide whether you would like to join thousands of other drivers and experience personalized insurance with telematics!
