Technology, like mobile-enabled apps and IoT are two good examples of technology making insurance more responsive and accessible for customers. 

Telematics demonstrates what data can do. It attracts customers, as it achieves a cheaper premium for the customer. It refers to a method of capturing and processing driving data and there are a huge number of potential applications.

A fair and accurate price for car insurance 

Currently, it is most used for pricing insurance in a way that rewards safe driving.

If you have a telematics policy you are sending your driving data to your insurer for marking and they will score you on how safe you are, by analysing when and where you drive and also your driving style. 

The following may be taken into consideration:

  • your location
  • how long you’ve been driving for
  • how rapid or measured your acceleration is
  • how harsh or smooth your braking is
  • your cornering

 From this data you get a truly personalised insurance price.

How does telematics insurance work?

Many insurers can now fit a telematics device into your car, a black box is the most common way of capturing the data, however there are other options, such as a telematics smartphone app or a device that plugs into the lighter socket, or other port.  Nowadays, it is more commonly fitted as standard. 

The telematics black box or app, will measure the driver’s capabilities. Premiums are then only based on how safe and conscientious a driver is, rather than paying for insurance based on the average driver. 

Most telematics devices operate with accurate and reliable GPS technology and are used to capture a lot of data, including: 

  • max/average speed travelled
  • acceleration
  • braking
  • cornering
  • latitude/longitude
  • elevation
  • distance travelled
  • number of journeys
  • journey time
  • road type
  • G-force (impact detection)

What and who is telematics good for?

Telematics is perfect for anyone who wants to take control of their insurance costs, and hopefully reduce them. 

If you fall into one of the high-risk groups, you’re likely to be looking at high premiums to insure your car. Telematics aims to help those in high-risk groups, such as:

  • inexperienced drivers
  • less frequent drivers with a low annual mileage
  • young drivers

Additionally, there are other benefits to using this technology. Useful functions are: your device could alert the emergency services if you are in a serious accident, it can send diagnostic data to your breakdown recovery service, it can be used as free anti-theft tracking and some can be used to make automated toll payments. 

Also read: Car insurance: tips on controlling the cost