How Telematics can help you get a lower rate on your Auto Insurance

Everyone likes saving money - why else would we cut coupons or shop at those big-box stores? Well, what if we told you there was a way that you could be saving money on your auto insurance? And it’s easy. So what is it? Telematics.

What is telematics? Think of it like the little black box on an airplane. Your insurance company inserts one of these devices into your vehicle and it monitors the following:

Number of miles you drive

Speed

How quickly (and often) you brake – i.e. the smoothness of your ride

What types of roads you travel on

What time of day or night you are driving

Why is this information useful? It helps us, you car insurance company, evaluate just how safe of a driver you are. Do you speed regularly? Or slam on the brakes a lot? Do you do most of your driving during rush hour on the freeway? We compile all of this information and use it to adjust your auto insurance premium. Safer drivers are typically rewarded with lower rates, although there is no penalty for drivers who aren’t so safe.

But there are other reasons we value these telematics devices. For starters, they can help us settle your accident claims faster. We can take the information from your little black box and use it to determine the speed you were driving at the time of the accident or how quickly you had to brake. Not only that, but the GPS on it helps to cut down on theft and help us get your car back. insurance

There is also a societal benefit to telematics: People are more likely to drive safe when they know their driving is being monitored – they are more likely to obey speed limits and traffic signs. And hey, we’re all about making our roads a safer place!

[Source: http://www.texaninsurance.com/client-service/blog/entryid/6136/how-telematics-can-help-you-get-a-lower-rate-on-your-auto-insurance]