What are Telematics?
Have you heard the term “telematic devices” and wonder what that has to do with insurance?
Before getting into the industry I had no idea what they were or that they could get me a discount on my auto insurance. Telematics are a way for insurance companies to offer you a price based on your driving habits or reward you for safe driving.
Telematic devices are devices that plug into your vehicle, usually in a small port under your dashboard. They can monitor different aspects of your driving; typically they measure how fast you accelerate or brake, night-time driving, and driving in bumper to bumper traffic. Some companies have smartphone apps instead of plug-in devices that track the same sort of data, plus it can monitor distracted driving from unlocking and looking at your phone while driving. Some newer vehicles even have a capability to directly bridge their driving habits without any devices.
Depending on the company, opting into these programs can get you an initial 10% off your premium, with an opportunity to earn up to 30 or even 40%! That can be pretty significant and negate inflation and rate increases that have been happening across the country frequently. Some may even offer gift cards or other prizes for safe driving.
If you have a teen driver, this could be a great incentive for them to drive safely. It helps the driver become aware of dangerous habits they might have while being behind the wheel. If the whole family registers for the program, it can be a fun competition to see who can earn the best discount!
Here are a list of some of our companies and their respective telematic programs:
-Plymouth Rock: RoadRewards
-National General: DynamicDrive
Contact us today if you want to get some quotes and are interested in saving money with telematics!