Do you feel as though you're paying too much for your car insurance because of everyone else's driving habits while you're a model driver?
Telematics could help lower your premium – depending on how you drive. This in-car device uses GPS and a mobile data connection to monitor your driving style such as speeds you drive, times of day you drive, etc. The data is sent to your insurance company and your insurer can then use this information to adjust your premium according to the way you drive.
Can telematics always make your car insurance cheaper? There are questions about how telematics might develop in the future and what additional information insurers might use in calculating an insurance premium, such as how long someone has been driving without a break, are they using their phone while driving, or how many passengers are in the car.
While there can be some potential benefits besides lower rates such as being able to monitor your children’s driving behavior, there could be some potential drawbacks, too. If people struggle with potential annual increase in premiums, they may have more of an issue if there was also a risk of rates increasing mid term because of their driving behavior. The “Big Brother” effect may make people reluctant to give permission to insurers to monitor their driving habits.
How to decide if telematics is right for you? Discuss your personal situation with your Ives insurance broker. Together, you can choose options that work best for your lifestyle!