Telematics has become a buzzword, especially as more and more car insurance apps are created. Many vehicle owners do not like the idea of having their phone “watching” their driving habits. We are here to answer some questions about telematics and to break down some common misconceptions about the technology.
Frequently Asked Questions Around Telematics
In the auto insurance, telematics is a technology that is continually gaining popularity. It makes it possible to gather and analyze data from a car’s onboard systems, which gives drivers, fleet management, and insurance companies useful information. These are some FAQs about telematics that people have:
1. What Is Telematics?
Telematics is a system that gathers and transmits information about a vehicle’s performance, such as speed, location, braking habits, and fuel economy, using sensors and GPS.
Before we dive into the pros and cons of telematics, we need to know precisely what telematics is and, more importantly, what telematics does. Telematics is essentially a software that shadows your driving habits and helps determine if you are a good driver. Using the information your phone collects, an insurance company can assess the level of risk you pose to an accident.
Telematics isn’t that new of a technology, and it is revolutionizing the insurance industry. Insurance essentially works as a pool. Everyone pays into a pool of money, and when a driver gets in an accident, that pool of money helps pay for the damages. If you are a good driver, you should not have to pay as much into that pool. If you are a terrible driver, you should have to pay more. Most insurance rates are simply an average between good and bad drivers since we can’t fully determine who is or isn’t a good driver – until now.
With telematics, we can give you the discount you deserve for being a good driver.
2. How Does Telematics Work?
Telematics devices can be integrated into a vehicle’s system or are commonly inserted in the onboard diagnostics (OBD-II) port. The gadget gathers information from the GPS and sensor systems of the car, then sends it to a central server or cloud-based platform.
3. What Type Of Information Does Telematics Gather?
Numerous types of information can be gathered using telematics, such as vehicle speed, location, acceleration, braking patterns, fuel economy, and engine diagnostics.
4. What Are The Benefits Of Telematics?
Drivers, fleet managers, and insurance providers may all benefit from the data that telematics can offer. Telematics can help drivers become better drivers and use fuel more efficiently. Telematics can aid fleet managers in route optimization, cost-effective maintenance, and increased safety. Telematics can assist insurance providers in risk analysis and driver-specific insurance policy customization.
There are considerable benefits to telematics. They primarily circulate around the cost of auto insurance. Telematics helps score your driver safety and risk factors. The advantage of using telematics is you can save a lot of money on your auto insurance. Additionally, you can determine if you need to improve as a driver.
5. Are Only Commercial Vehicles Equipped With Telematics?
No, telematics may be applied to both private and public transportation. In reality, a lot of auto insurance providers now provide usage-based insurance (UBI) plans that base rates on a driver’s driving style using telematics data.
6. Can Telematics Data Be Included As Evidence?
Telematics data may be presented in court as proof, yes. Telematics information has actually been utilized in insurance fraud cases to establish whether an accident was staged or not as well as to establish who was at blame in a collision.
7. Is Telematics Technology Safe?
Since telematics technology doesn’t require the driver to interact while the car is moving, it is generally regarded as safe. However, given that telematics data can be delicate and private, concerns have been raised about data privacy and security.
8. Is Telematics Spying On Me?
Most telematics is run through an app on your phone, and they are not “spying” on you exactly. They are collecting about the same if not less data than your Facebook app or Tik Tok app is collecting on you. Additionally, telematics is focused on your driving habits, not your shopping habits. If you have apps on your phone, you should be comfortable with Telematics.
Telematics For Business Owners
As a business owner, it can be stressful hiring employees and having them drive an expensive asset down the road. It can be challenging to determine which employee is a safe driver. Who can you trust with your business vehicles? Using telematics can help you as a business owner. Determine your commercial auto insurance coverage and which employees should be driving with telematics.
What Auto Insurance Companies Offer Telematics?
Many car insurance companies offer telematics to lower the cost of your auto insurance policy. When you work with an insurance company like Strickler Insurance, we can find the auto insurance option that fits you and your needs.
Contact Strickler Insurance For Your Insurance Needs
Strickler Insurance is located in Lebanon, Pennsylvania, and provides professional insurance services for residents and business owners throughout the area as well as a variety of neighboring states. We hope to provide you with the best insurance experience and coverage. Contact us today.