Telematics insurance is one of the most popular and beneficial car insurance polices today. It’s widely used by experienced and beginner drivers alike, due to its advanced technology and great benefits. If you’re considering telematics insurance, keep reading to understand the science behind how telematics car insurance works, and what it means for your driving.
What is telematics insurance?
Telematics insurance is a type of policy that involves the use of advanced technology to analyze various aspects of your driving. This information is then used to adjust your insurance premium costs. Most insurers base your insurance premiums on how likely you are to be involved in an accident, and therefore make an insurance claim.
Therefore, by using telematics technology, they can have a clear picture of how safely you’re driving, and use this information to accurately adapt the cost of your insurance premiums.
What is the science behind telematics insurance?
Telematics insurance works using a specific type of technology that needs to be installed in your car. This is often done through a special computer chip that’s installed in your car’s windshield. Alternatively, some insurers provide a mobile application that can be installed on your phone to operate the technology.
The technology uses telecommunications (phone lines, cellular networks, cables) and informatics (computer systems that structure data) to transmit a wide range of data to your insurance provider, so they can assess your driving safety.
The way this data is collected is through the motion sensors – on either the chip or the phone – and the use of global positioning system (GPS). This can measure even the slightest movements of your car, in comparison to where you are on the road, as well as the speed limits.
It’s important to know that if using your phone as the telematics, you must have your location services active permanently, not just when you’re in your vehicle.
What does telematics technology analyze in your driving?
To give your insurer a clear picture of your driving, the technology will analyze various aspects of your driving behavior, including things such as:
1. Driving at safe speeds
You’ll be assessed on how fast you’re driving on certain roads, and whether you’re staying within the legal speed limits. If, for example, you’re driving too fast on the highway, your technology will pick up on this.
2. Executing manevuers properly
This will measure how well you execute a range of car maneuvers. This could involve turns, making sure that you don’t swing your car around corners at dangerous speeds. Or, it could include how well you park, and whether you bump into anything.
3. Stopping in good time
The technology will also pick up how safely you’re stopping the car where necessary. For instance, if you’re not paying attention to the road as you approach a stop sign, you’ll need to brake harshly and suddenly, and your software will record this.
4. Using devices
It’s essential that you give your driving the full attention it needs, and don’t get distracted by any devices. Therefore, the system will be able to tell if you’re using your phone whilst on the move, such as scrolling through texts, for example.
5. Driving at ideal times of the day
It’s a well-known fact among insurers that the later hours of the day are more dangerous to drive in, since visibility is much lower. Therefore, your software can pick up how often you drive at particular times of the day, to assess your safety level. By analyzing this data thoroughly, your insurer will see an accurate display of your driving safety, and be able to adjust your premiums accordingly.
If the evidence shows you’re driving safely, your premiums will be lowered.
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