What You Need To Know About Insurance Telematics
Telematics are not 'new' in any case. They have been utilised in Formula One racing and fleet management for a number of years. Telematics work by combining the infomatics (when data is collected then processed) with telecommunications technology to transmit GPS and motion sensor data to a computer that is programmed to collect the data.
Insurance companies have been taking advantage of this telematics technology as a way to reduce accidents (because the driver is always monitored they are more inclined to drive safely) and reduce insurance premiums. Insurers are fitting the 'black box' to their customers' cars which then monitors the drivers' activity and reports back to the insurer, revealing whether they really are a safe driver or not. This makes the driver a lower risk and entitles them to a discount on their usual insurance premium.
The telematics device is roughly the size of a mobile phone and is installed underneath the car's dashboard or bonnet. The box utilises GPS and motion sensor technology to report where the car is, how long it's been driving for and how smooth the cornering, braking and accelerating is. This information is used to create a 'profile' for each driver which is then used to determine whether you are a safe driver or not.
These telematics devices are particularly good at helping out drivers who are automatically stereotyped into the 'high risk' category, such as young and inexperienced drivers. You can reduce your premiums by proving that you are a safe, aware driver by using a telematics box. On the other hand, if the box shows that you like to speed and you aren't very aware of what's going on around you on the road then your premiums could even increase.
These telematics boxes offer more benefits than reducing insurance premiums. The built-in GPS means that your vehicle will be easily located if it happens to get stolen. The box could also help determine liability if you crash your car - this is particularly valuable with the amount of insurance fraudsters that are on our roads today. Some insurers also offer online services which allow you to log on and track your progress and see how you can improve your skills.
James Savery, 04 June 2015