It is every car owners desire to pay lower car insurance premiums. Insurance brokers always seem to be in negotiation ‘battles’ with their clients who ask for lower premiums. However, the insurance company needs to be convinced the client deserves an insurance discount. Telematics is an innovative technology that can provide a solution in this regard.
Telematics is the term used t describe technologies that enable (usually via a small black box) monitoring and recording of details such as driving habits, speed records, and mileage. Insurance companies now often rely on a telematics box being installed to monitor some drivers’ behaviour while driving and determine who deserves to pay a lower premium.
Some of the conditions for car insurance include the following;
- Safe driving habits- As the client, you are expected to drive as safely as possible to avoid car crash or other damages covered by your insurance.
- Age of the car and model.
- Mileage limits- Some insurance plans specify the mileage limits you should not exceed while an active insurance plan protects your car.
- Your braking system- Effective braking systems can reduce car crashes; insurance companies, therefore, encourage their clients to maintain their car braking systems.
The telematics is often referred to as the vehicle’s ‘black box.’ The name was adopted because of the way it records every event of a journey – like an aircraft’s ‘black box’.
When installed in a car, only the car owner knows because there is no indication on the dashboard that shows the cars usage is recorded. However, you are in the position to decide if you want to participate in the insurance company’s telematics program.
Some car owners have criticised the decision of car insurance providers to offer telematics policies to their clients. The argument is as follows; critics claim the information recorded and stored by the device is quite intrusive. Clients have indicated they feel ‘monitored’ when telematics devices are installed in their vehicles. They demand that the car insurance companies should address the requests from their clients without compelling anyone to install telematics in their cars.
Benefits of telematics
While there have been criticisms, many car owners have chosen to participate in the telematics program. Making this decision is easier when they understand the benefits.
You will consciously make more efforts to drive safely when the device is installed in your car.
Lower insurance premiums
In the UK, you can save a lot of money when you pay lower premiums for your car insurance. The insurance provider willingly approves lower premiums for clients who prove they can be regarded as clients with minimal risks regarding making insurance claims.
If criminals steal your car, it can be tracked using the GPS functionality of the telematics.
Consider it a test. The report from your telematics box is examined when you need to renew your car insurance. If the insurance company is impressed with the report, you can be offered significantly lower insurance premium.