We typically hear from customers who are interested in learning more about telematics because they’ve listened to commercials that intrigued or their interest or because they simply want lower rates and are willing to try new things to get there. While telematics isn’t new – in the car insurance industry or otherwise – many drivers have never considered or participated in telematics options. At Philleo Agency Insurance, we love to share all the possibilities with you.
Here’s everything you need to know about telematics programs in car insurance to make the best decision for you and your family.
#1 – It’s Completely Optional
Here’s how it works: you request a quote online or stop by our office, and we develop a myriad of different options for you. Those options may include quotes from several major insurers, some of which include a telematics program and some that don’t. You’ll be able to review the cost and coverage with a licensed insurance agent to determine which plan makes the most sense for you. If you like a plan that has a telematics component, we’ll walk you through it step by step.
#2 – They Collect Specific Data
Drivers often worry that they won’t know what information the insurance company is collecting, but you can rest assured that a detailed summary is included in your policy. Although there may be variances between one insurer and the next, the information we see most insurance companies collect includes how often you drive over a certain speed (usually around 80mph), how often you brake hard, and how often you take sharp turns. They’ll also collect demographic data, like which cities you drive in the most, what time of day you drive in those cities, and how many miles per day you tend to put on your vehicle.
Finally, your insurance company will most likely collect information surrounding any crash your vehicle is involved in, like which other vehicles were involved, how hard the impact was, how much damage occurred to your vehicle as a result, and how likely it is that either somebody in your vehicle or another vehicle involved would have sustained an injury.
#3 – They Use the Data to Your Advantage
The overall goal of telematics programs is two-fold: to encourage safer driving habits and to reduce costs associated with loss. That means that insurance companies are using the information they collect to benefit the driver in the end; those drivers who participate generally make safer decisions on the road keeping everybody safer, and insurance companies are able to calculate premiums based on information that is unique to you, ensuring that you never pay increases to cover losses incurred by people like you.
#4 – You Can Learn More Without Committing
If you want a quote without committing to a telematics program, the team at Philleo Agency Insurance can help. We can enter your data into multiple systems to provide you with several options, with or without telematics programs, so you can compare costs and coverage and make the most informed decision. Request a quote online here!