Drivers often stop by Luxor Insurance to find out if they’re eligible for any discounts on their car insurance, and the answer is, many drivers are eligible for discounts for participating in telematics programs.
What are Telematics Programs?
Telematics programs reward responsible drivers by basing their auto insurance premiums on their own driving habits rather than the “average” driving habits of people in their demographics category. For example, a 23-year-old unmarried male will typically have some of the highest auto insurance rates because statistics show that other unmarried 23-year-old males get into accidents more often and experience larger losses than people in different demographic groups.
What if you (or your child) is the exception to the rule? You are now paying your insurance company for the risky behaviors that other drivers engage in despite your responsible driving habits.
Telematics can help.
How Do Telematics Programs Work?
The concept is pretty simple: you agree to place a device in your car, which plugs into your vehicle’s diagnostics OBD-II port, and that device collects data about the way you drive. To be more specific, it observes and records:
- how often you brake hard
- how often you exceed a certain speed (~80 mph)
- how sharp you turn corners
- what time of day you do the most driving (during rush hour or after dark, for example)
- how many miles per day you drive
- where you drive (urban or rural settings, for example)
In addition, the device records information that can be helpful if you’re ever in an accident:
- who else might have been involved in the collision
- how likely it is that that person or a passenger in their vehicle would have sustained injuries during the crash
- details about the damage your own vehicle sustained
- information about the events leading up to the crash, which may be able to help prove fault
Also, because your insurance company receives crash information in real-time, it improves their chances of finding reliable witnesses, which can help show that you weren’t at fault (if you weren’t, of course).
How is the Data Used?
The data is used to calculate customized auto insurance premiums based on the actual risk of collision, to gather information about an accident to help determine fault and likelihood of injury, and sometimes to make decisions about whether to continue to insure high-risk drivers.
Who Benefits from Telematics?
The truth is, everyone benefits. Even drivers who elect not to participate in telematics benefit when drivers who do participate make safer choices on the road. Drivers who participate benefit by decreasing their risk of an accident and lowering their premiums at the same time. Parents whose children participate gain peace of mind and a better understanding of driving habits so they can teach and coach in those impressionable years. The insurance company benefits by reducing the prevalence of serious accidents and major losses, allowing them to keep rates lower for all subscribers.
Which Insurers Offer Telematics Programs?
Many major insurers offer telematics programs, including Progressive, Safeco, Travelers, and Nationwide. You can ask your local agency which of their insurers have programs and how they work to learn more.
To take advantage of telematics in Fishers, Indiana, or just to learn more about your options and potential for savings, contact to Luxor Insurance Group today. Our qualified staff is standing by.
