If you're looking for a new automobile insurance policy, and you're offered a telematic system, you may want to say yes to the device. Insurance telematic devices plug into your car and provide vital data to the insurance company; data that can be used to monitor your driving habits. Here are just a few of the ways that insurance companies utilize the information obtained from telematic devices.
Reward Good Drivers
If you're a good driver, and you want to save the most money on your insurance, you need to have a way to show those good driving habits to your insurance carrier. The telematic device provides you with that ability. Your telematic device will keep track of your driving habits and relay that information back to the insurance company. Once the insurance company has the information and determines that you're a good risk, you'll receive rewards in the form of lower premiums or other good-driver rewards. The longer you remain a good driver, the more rewards you'll receive.
Monitor New Drivers
Insuring a new driver can be quite costly, especially when that new driver is a teenager. Unfortunately, it can take years to prove that your teen is a good driver and worthy of reduced premiums. That's where the telematics device comes in handy. By placing a telematics device in the car that your teen will be driving, the insurance company can monitor their driving habits and reward them more quickly. Not only that, but the device will also monitor any safety issues that are discovered, which will allow you to work with your teen driver to overcome those hazardous driving habits.
Protect Against Theft
Losing your car to theft is never a good thing. The longer it's out of your control and in the hands of thieves, the more likely it is that your car will sustain major damage. However, if your car is equipped with a telematic device, it can be recovered much more quickly. That's because the telematic device has the built in ability to track your car wherever it is. As soon as you contact your insurance company and report it stolen, they'll begin tracking its location, which will provide law enforcement with the information they need to go and recover your vehicle.
Obtain Accident Details
When you're in a car accident, it can be difficult to prove that the other driver was responsible, especially when they're claiming that you caused the accident. With a telematic device in your car, you won't need to worry about that. Your insurance company will be able to gather all the information it needs right from the device, including how fast you were going or whether you were driving erratically at the time of the accident. That information can be very useful following an accident.
For more information about insurance telematics, contact your insurance company.