Representing a great way to improve insurance premiums for younger and inexperienced drivers, telematics technology involves fitting a recording device to your car, which monitors your driving habits and feeds them back to an insurance company. While best for drivers that tend to suffer as the result of generalizations over their age range and likelihood of accidents, telematics can provide a more accurate quote for any driver, and can be particularly useful if you want to prove that you’re safe on the road.
Young drivers, and particularly men aged between18 to 21, tend to pay the highest premiums for their insurance; this age range is viewed as high risk by insurers, both for crashes and for the likelihood of making a claim to pay for damages. Moreover, over 65’s can be singled out by insurance companies as being an accident risk. Telematics insurance offers a more tailored kind of policy for drivers, which can paint a more accurate picture of how you drive.
The device, which is discreetly installed within your car, collects information on the time of day or night that you drive, as well as on your average speed, and whether you aggressively accelerate at corners and in traffic. GPS tracking within a telematics device can also provide examples of the types of routes that you drive, and the hours you spend on the road every day, all of which can be uploaded on a regular basis to work out your premium.
Other benefits to using telematics technology include the ability to track a car using GPS, as well as the opportunity to refer to an accurate record of your driving in the event of an accident and subsequent claim. If you’re a good driver, or a driver that takes a regular route at low risk, you can demonstrate to insurers that you should receive lower premiums as a reward for being responsible.
Telematics insurance is becoming more popular all around the world, with drivers keen to improve their premiums and demonstrate their safety. The amount of people using telematics insurance is predicted to increase by 81 per cent over the next five years, with 107 million drivers potentially being on telematics policies by 2018. When considered alongside the use of in-car software like lane departure assists and cruise control, telematics could be a standard feature of many cars in the future.
Telematics can work well, then, if you’re a driver that wants a more accurate quote, and if you tend to use fairly stable routes. For example, if you’re driving in a large city, you can reduce high insurance premiums by demonstrating your safety; this can be particularly useful in densely populated cities around the world like London, Hong Kong, and Singapore, with insurance providers such as Direct Asia offering tailored policies that make use of telematics technology.