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Telematics are not only handy gadgets for your car, but they can also be used to help lower your insurance premium!
The use of telematics in vehicles has become increasingly popular. At first, they were mostly used in corporate companies. As a fleet management tool, the telematics were highly welcomed to analyze driver behavior and increase the safety standards for the fleet.
As of late, telematics has been opened up to the public and has become a standard inclusion for most cars.
What Are Telematics?
Telematics are communicative instruments that are installed in vehicles to provide feedback on the status of the car. It is a revolutionary structure that combines a GPS system with onboard diagnostics, making it possible to record where the car is, how fast it is going, and how it is behaving. The company will install a small device, which will communicate data back to be recorded and analyzed.
Benefits Of Telematics
These devices assist in promoting the safety and security of the vehicle that they are installed in. They provide the following protection:GPS Anti-Theft Systems
Should you be a victim of theft or hijacking, the anti-theft system will make it easier for you to track your vehicle. The device is usually hidden and each one is hidden in a different spot in the car. For your safety, it is installed without you knowing where it is located in the car. The system also sends out an alert as soon as unusual behavior is detected.Crash Data Reports
These reports make use of GPS data to compile details of what happened during a car crash. This will assist in determining who is at fault in an accident as well as with the accident report.Leverage For High-Risk Drivers
High-risk drivers, like young drivers, can prove that they are responsible drivers with the installation of telematics. Drivers between the age of 18 to 24 usually pay a higher insurance premium due to risky driving behavior. Not all young drivers are risks on the road, and the device can prove that.Poor Driving Habits
Telematics can track the behavior of the driver. Actions like speeding, harsh braking and cornering, and erratic driving can be picked up. In fleet management, this is particularly helpful to identify bad drivers and reduce the risk of loss. In private cars, it can be used to increase insurance premiums of, particularly risky drivers.Satellite Navigation
This assists you in ascertaining where you are, plotting your route, and navigating a safe journey.Vehicle Safety Communications
If plotting your journey is not enough, the device allows you to check for hazards, as well as monitor traffic and the cars around you.Emergency Assistance
Should you be in an accident, the device will be able to detect how severe the accident was, and will be able to send emergency services directly to the scene.Fleet Management
The device assists with the management of the vehicle and fuel. It can also assist with basic vehicle diagnostics.Driver Health
The device allows the driver's health to be analyzed. How long has the driver been on the road? Is it time for a break? How many hours have they driven in total?
The Golden Question: Will It Lower Premiums?
The simple answer here is, yes. Insurers install the device should you choose to go with a pay-as-you-drive insurance package. This will track the number of kilometers you do per month, and will bill you accordingly. Discovery Insure, for example, also installs a device when you sign up with them. The insurer will monitor your driving habits and behavior and, should your driving habits be good, you will be rewarded. Good driving can, for example, earn you more cash back on your fuel rewards.