Last Updated on February 5, 2024 by John Robinson
If you are wondering what telematics is, or how it works – this is the article for you! If you are looking to insure your vehicle, it’s important to consider the benefits of telematics insurance and what it has to offer to drivers.
Read on to find out more about telematics…
What is telematics?
In simple terms, telematics is the joining of two sciences; telecommunications and informatics. It uses the method of monitoring vehicles and equipment by using global positioning systems (GPS), which will assess the movements of your 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 is measured by telematics?
Telematic GPS tracking technology can be installed by a chip inserted in your vehicle, or it can be used by downloading an application on your phone – each insurance provider may use a different method. This will track:
- How many miles you drive each day, week and month.
- What time of day you travel – if it is in the evening, statistics show there is a higher chance of you being involved in an accident.
- How well, or how poorly the vehicle is driven. It will detect sudden breaking, sharp turns and violating traffic rules – which all increase your chances of being involved in an accident.
- If you are wearing your seatbelt whilst driving.
In addition to this, telematics can be useful in other ways. For example, if you are a business sending out shipments or trailers which need to be tracked, telematics can put trackers on these items to ensure they are not lost or misplaced whilst on their journey.
Which type of drivers should use telematics insurance?
Young drivers are usually dealt a massive bill when it comes to insurance – it’s an expensive process!
Due to the insurance provider not knowing how well you drive; they tend to assume that all new drivers could be a potential risk – which could be true in some cases.
However, if you are a new driver who prides themselves on driving safely and within the speed limits, you should consider telematics. With telematics, you will be judged on your genuine driving capabilities, not by a guess based on other new drivers.
What are the benefits of telematics?
There are lots of benefits of using telematics, the first being that insurance companies usually reward their customers if they are shown to be driving safely. Which means if you drive well, you could save a shed load of money.
Telematics can also help you drive safer; this is done by a sending you report of your driving performance. With this you can identify any unwanted driving habits, such as speeding or harsh breaking.
Additionally, the technology can help you to avoid traffic or any delays whilst you are travelling, by offering more efficient routes.
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We hope this article has helped you to understand what telematics measure and how they work. It may be confusing to get your head round at the beginning, but it is soon easy to pick up!
Is telematics insurance right for you? Get a quote from your chosen provider to find out!
