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Telematics Car Insurance: Cheaper for Careful Drivers

If you are a careful driver who does not speed, drive in the dark or at peak times, you should be able to get cheaper car insurance by switching to a telematics insurance provider. This is where you have some new technology fitted into your car that reads your mileage and your driving habits. The information is fed back to the insurance company and is proof of the miles you cover and that you drive safely and pose less risk of accidents and claims.

Sometimes this type of auto insurance coverage is referred to as black box auto insurance because the tracking device that is placed in the car is usually in a small black box about the size of a pack of playing cards. It might sit on the dashboard or be hidden away under the hood.

The Advantages of Telematics Car Insurance

When your next auto insurance premium is set, all the data from the telematics device is taken into consideration and each driver is judged as an individual. This is how telematics insurance differs from standard car insurance, where premiums are set based on the driver’s stated history, job, age, experience, and even the address where he or she lives.

Almost anyone could benefit from telematics, but it is particularly good for those whose standard insurance premiums would be exceptionally high, such as people with a criminal record or new drivers without experience. After the period of the first premium, the cost can drop significantly.

Telematics Packages

Packages offered can be very different with different insurers. Some will change the premium after the first year is up. Others may offer reductions to monthly payments. Some may top up the mileage allowed at the price you pay once they realize how much of a safe bet you are. Some allow you to pay by the mile, taking into account the time of day and night you use your car and where you drive. You still need to shop around to find out which telematics insurance company will provide what is best for you.

Your black box will then be proof that you rarely use highways, drive below the speed limit and don’t need to brake sharply. In fact it will record how often you brake, how you accelerate and take corners, and when and where you drive. Telematics car insurance therefore encourages safer driving, so the authorities are in favor of it.

Because of the tracking technology it also helps to trace stolen vehicles. If you display that your vehicle has a telematics device, it can discourage car thieves, so your car is less likely to be a target for them.

What to Beware of with Telematics

For some drivers there are issues with this type of auto insurance. You might not want to be monitored in this way. You might be concerned about your privacy and want to know what will happen to your personal data. Certainly you should look at the privacy policy of the insurer before you decide to buy a policy.

Some drivers may have to drive to work via highway, in the rush hour or at night. Or they may not have confidence that their manner of driving will be beneficial to lower premiums. They may be concerned about whether they will be able to cancel the policy if they are not happy about it.

Other aspects to check include whether the car insurance company will charge to install and maintain the technology. Some do and some don’t. You don’t want this cost to negate any savings you can make on your premium.

You also need to check if the policy restricts you to a very low mileage, or to when and where you can use your car. Remember too, that the technology records how the car is driven, whoever is driving. It does not distinguish between drivers, so if you add named drivers, you will be financially penalized if their driving is not up to scratch.

If you believe you are a safe driver, and these aspects are not a problem for you, telematics car insurance might an economical way for you to keep your vehicle on the road. But don’t forget to check the small print from different providers to find the best policy for you.

Enter your zip code and details into the banner on this page to begin your search for a telematics car insurance provider. You can enter as many details as you wish, the more quotes you receive the greater chance of increased car insurance savings.