Telematics is a computerized source of data collection. Insurance companies have started to use this technology to create apps which can collect information on your driving habits with the incentive of lower premiums.
How Much Can I Save?
When you first enroll in the programs you will receive a discount of 10 to 15% depending on the company. Based on the data collected you could save up to 30% on your renewal. Some companies even review the data every 6 months to see if you qualify for a further discount at that time.
What Information Do they Track?
This varies depending on the company. The common things tracked are:
- Smooth braking and acceleration
- Number of kilometers driven
- Duration of each trip
- Time of day you drive
- Distracted driving
What if I am in the Car but not Driving?
There is a spot in the apps where you can indicate that you were not the driver. Some of the apps automatically determine this using the technology that already exists in the phone.
Can my Policy be Cancelled based on the Information Collected?
No. The insurance company can only cancel your policy based on their filed underwriting rules. What can happen is that you do not qualify for a discount based on your driving habits. In this situation you would be charged the same premium you would be charged if you did not enroll in the program.
Who sees my Data?
The insurance company and yourself. Most applications will provide you with up to date data on your driving habits and an estimate of discount you can expect to receive.
What Technology do I Need?
A smartphone with a data plan is required.
How do I Enroll?
Contact us to let us know that you wish to join the program. We will enroll you and apply the discount to your policy. Download the insurance company’s app. You will receive an email and/or text from the insurance company with additional details. Then start driving and saving!