Telematics insurance: how to find the best policy for you and your car

Finding the best insurance policy for you and your car is a task that requires a lot of consideration. You have to factor in a range of things, from your driving behaviour to how much you want to pay for your premiums.

However, finding the right policy can be made much easier when you consider something like telematics insurance, which can bring a range of benefits to all types of drivers.

In this article, you’ll learn what telematics car insurance is and how to tell if the policy will be the right fit for you and your car.

To get started on your own car insurance policy that uses telematics, learn more on how telematics works at Lemonade Car.

What is telematics car insurance?

Telematics car insurance is a specific type of policy that incorporates expert technology to assess your driving, applying this to make relevant adjustments for your premiums.

The technology for this policy uses telecommunications – hence the name – which involve things like cellular, phone, and cable connections. You’ll usually have something like a chip installed in your car windshield, or an app installed on your phone, which collects and transmits the data.

This location-based telematics software can thoroughly analyze multiple aspects of your driving behaviours, such as:

  • Adherence to speed limits – The software will be able to assess your speed against the limit for the road you’re on, so any speeding will be picked up.
  • Safe maneuvers – The telematics will also know how safely you carry out maneuvers like turns and parking.
  • Awareness and perception – If you’re not paying attention to the road and need to execute any harsh braking at stop lines, for instance, this will also be recognized by the software.

If your insurer can see from the data that you’re driving safely and to a high standard, then your insurance premiums can be lowered – since the likelihood of you having an accident is reduced.

How to tell if telematics insurance is right for you

There are many ways to tell if you’d benefit from telematics insurance, such as:

  • You’re a new, young, but safe driver

Telematics insurance can be highly beneficial for particular demographics of drivers – often young or newly passed – who are often assumed to be more likely to have an accident, and thus, have higher premiums.

With your telematics system, you won’t have to rely on any assumptions made about your driving, but you can get first-hand data to reflect how safely you drive on a regular basis.

You may be a new driver, but also one who abides by every law of the road and drives very safely. You might also only use your car every so often, which will also make you less likely to have an accident, so your telematics software can analyze your mileage and adjust your premium accordingly.

Using the accurate analytics of the software, your insurer will have a more accurate idea of how well you drive, so they can base your insurance premiums off a fairer system, rather than just the particular demographic of driver you fit into.

  • You want extra safety during incidents

You should also consider telematics insurance if you’re looking for additional safety when it comes to the event of an incident.

You may, for instance, find yourself involved in a collision with another car, or you might have broken down in a place that’s far away from home. Regardless of the situation, it’s highly likely you’ll require roadside assistance to be sent to you.

Since telematics operates on location-based technology, this means that you’ll always have a more accurate location to give to those who you require assistance from.

Rather than spending time trying to figure out where you are, your software can very easily pinpoint your location, so assistance can be sent out quicker and to the right location.

Telematics insurance is a great option for many drivers, so be sure to consider whether it’s the right policy for you, then contact your chosen provider right away.

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