Lower your car premiums with telematics insurance


For many drivers, securing the best car insurance premiums for the lowest price is one of the main priorities when it comes to your car.

Therefore, one of the best ways to do this – and something you should definitely familiarize yourself with – is telematics insurance.

Read on, to learn what telematics insurance is and how it can help you lower your car premiums.

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

What is telematics insurance?

Telematics insurance uses advanced technology to analyze your driving behavior, so that your car premiums can be aligned more accurately with your driving safety.

Insurance providers will be able to observe various aspects of your driving, and using this, establish how likely you are to be involved in an accident when driving. After this, they can offer you a premium based off of this data.

How does telematics insurance work?

Telematics insurance uses technology that runs on telecommunications – phone lines, cables, and cellular networks. This is how data is transmitted from the driver to the insurer, so informatics – computer systems – can be used to organize and store the data.

In order to transmit the data from the driver to the insurer, the vehicle will need telematics technology implemented. This usually comes in the form of a chip installed in the windshield, or an app installed on your cell that’s kept in the car when driving.

Telematics will pick up on different aspects of your driving behavior, including – your awareness of speed limits, your ability to maneuver safely, how well you stop the car, and more.

This will indicate how safely you are driving, displaying this to your insurer, and as a result, they can adjust your premiums accordingly.

How can telematics insurance lower your car premiums?

Telematics insurance can help you lower your car premiums in a range of different ways, which can include:

Discounts for safer drivers

With telematics insurance, you’ll receive car premiums which are tailored specifically to your behaviors as a driver, and this can massively benefit those who are deemed safer.

Using the technology of your telematics, your insurers will be able to see how well you execute a range of different driving aspects, including – speed, maneuver safety, stopping, turning, etc.

For most new and young drivers, it’s often assumed that you’re performing these driving aspects with much less safety, and therefore, you’re more likely to receive higher premiums from your insurers.

With telematics, however, if you’re someone who completes these driving skills safely, your insurer will be able to clearly see this. As a result, they’ll know you’re less likely to be involved in an accident due to unsafe driving, and can offer discounted premiums to match this.

Driving frequency taken into account

Another way telematics can lower your car premiums is through its ability to track your location and driving frequency.

Telematics insurance uses location-based software that tracks your car’s location using global positioning system (GPS). This way, your insurer will know when your car’s been on the move, and how far you’ve travelled in your journeys.

Statistically, the more you use your car, the more likely you are to have an accident in it. This means most insurers will increase premiums for drivers who travel often, and for longer distances.

However, with telematics, you can get cheaper premiums if you use your car less often. With the location-based software, it will be evident just how much you’re driving, and if your insurer can see it’s less frequent, they can lower your premiums.

If you’re someone who’s looking for the best car insurance policy with the lowest premiums, then be sure to consider telematics.

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