Telematics – A Great Way to Save Money on Your Auto Insurance
Now more than ever, drivers are trying to find new ways to save money on auto insurance. Insurance companies are aware of this fact…and believe it or not…are looking to do just that. This is easier said than done, however. Up until recently, there have been a limited number of ways an insurance company can lower auto insurance premiums while still maintaining profitability. What is telematics? It’s a means of electronically monitoring individual driving habits and using that data to more accurately charge rates that are tailored to each driver. This allows insurance companies to pinpoint an individual’s driving habits to better predict future claims. Yes, technology is finally catching up with the insurance industry. Telematics is now being offered by well established, and reputable insurance carriers, as well as new and edgy “InsureTech” companies flush with venture capital. According to the Insurance Information Institute, “Nine of the top ten private passenger automobile insurers have a usage-based insurance program in place.” How does telematics work? Essentially, your insurance provider will access your driving habits via a downloadable app on your smartphone, or a separate device that can be plugged into your vehicle. This monitoring process will last 3 to 6…