We think an informed driver is the best driver, so we’ve compiled everything you need to know about telematics in auto insurance into one short, easy-to-read list. Here it is!
#1 – Telematics Programs are Optional
Drivers have the option to choose between programs that require the use of telematics and programs that don’t. Many drivers choose telematics programs to encourage safer driving habits and to reduce their auto insurance rates (but lots of drivers elect not to go with a telematics program, too). The decision is entirely yours; we’re just here to support you.
#2 – Your Insurance Company Provides the Device
Your insurance company will supply the device, which you’ll plug into your vehicle’s OBD-II port (the same port used by mechanics to run diagnostics when you see a check engine or other error light on the dashboard). If you switch from one insurer to another, you’ll likely need a new telematics device and may be required to return the old device to your previous insurer.
#3 – The Telematics Device Records Your Driving Behavior
Perhaps the most important thing to know is what the device is gathering information in your vehicle. The exact information may vary a little depending on the insurer. Still, generally speaking, the device is observing how often you engage in high-risk driving behaviors like speeding, braking hard, and turning corners sharply. It also observes when, where, and how much you drive.
#4 – Accident Information is Recorded, Too
Misinformation (or lack of information) about the details of an accident can be detrimental to drivers, passengers, and car insurance companies. Telematics devices often provide clarity during the process of investigating and paying insurance claims by offering up additional information, such as the identity of any other vehicle involved, the location and extent of the damage to your own vehicle, and even impact data that can help determine the likelihood of injury.
#5 – You Still Get to Choose Your Insurer
While electing a telematics program in the early years of this technology may have limited your options, now many major insurers like Safeco, Progressive, Nationwide, and Travelers offer telematics programs. When you choose an independent insurance agent, you can receive quotes from many major insurers and select the plan that’s right for you.
#6 – The Data is Used to Your Advantage
Your insurance company will use the data collected to:
- calculate your insurance rates; the safest drivers will have the lowest insurance rates
- investigate accidents, ensuring that the driver at fault pays for the damage and, if that’s you, protects you from false or exorbitant claims
- make decisions about how who to ensure; drivers who exhibit consistent high-risk behaviors may lose coverage, reducing risk of loss and increased rates for all insured
#7 – Telematics Make the Road Safer
Whether you choose a telematics plan or not, the use of telematics in auto insurance may still make the road safer, even for you. Those who elect telematics plans are motivated to drive safely, keeping everyone on the road safer.
#8 – Exploring Telematics is Completely Free
Get a no-obligation quote for auto insurance – with or without telematics – from Lillie-Couch Insurance in Clear Lake, Wisconsin, today. Our friendly team is standing by!