In a year, there are approximately 130,000 car accidents in Wisconsin. What was the last time you got into an accident? Didn’t you wish you had some evidence on your side? Telematics is rapidly shaping the auto insurance industry, making it possible for insurance companies to determine exactly how safe a driver you are… and potentially what you were doing when you had an accident. Let’s take a look at this new technology.
Prove Your Driving Skills through Telematics
Telematics isn’t strictly new. In fact, for the past few years, insurance companies have been asking their customers to download an app on their phone that provides rudimentary telematics. Phone apps can use GPS to determine how fast you usually drive, how many miles you normally drive, and other important statistics. Companies like Progressive and Nationwide use these telematics to figure out more accurate ways to charge you for your insurance.
Let’s say you’re in a high-risk group: You just started driving, and you’re still 17. But you’re an extremely cautious driver. Without telematics, you’re going to get charged based on your age group. With telematics, you get charged based on your behavior. Conversely, your neighbor might be in a lower risk group at 50. But they might be a terrible driver. Telematics is a great thing for you, and a great thing for the insurance company, too.
Now telematics is even more advanced than a phone app. Rather than just downloading an app, you can actually plug a device in and track even more accurate data, such as how you maneuver on the road.
Make Sure Your Insurance Company Can Give You the Services You Need
Insurance companies mine their telematics data to determine what services their drivers actually need. And that’s important because it means that your insurance company will gradually be able to adjust to you over time. Your driving data may show that you actually drive for much longer distances (without incident!) through rural areas than they thought. That means you might actually need more coverage for break downs or incidents in rural areas than you really need for accidents.
The more data an insurance company has, the more they can improve their services. Telematics gives them this information so they can continue to deliver value.
Get Data Regarding Potential Accidents
Telematics is always on, including when you may get into an accident. What happens in a “he said, she said” situation? Well, with telematics, you have data on your side. Your telematics can show that you weren’t moving at all when you were hit, or that you were obeying speed limits. It can even show whether you braked hard during a situation, or whether you were simply easing off the gas pedal. This is another situation in which more information is often better.
Telematics can be used to improve insurance pricing, services, and claims management. And all of this is better for the insured, because it means the insurance company can optimize its processes, save money, and pass those savings down to its clients. For more information about the core benefits of telematics and driving data, contact Giuffre Insurance.
