Telematics Insurance:  Driving your way to discounts

 In Ozarks Live

Telematics Insurance:  Driving your way to discounts

As an insurance agent, by far the biggest complaint I hear is ‘my insurance went up….’.  While rates aren’t always in our control, there are some discounts we can add to the client’s policies.  The most popular discounts are for multiple cars or multiple policies with the same company.   Since The Resource Center is an independent agency we also have the ability to shop your rates with different companies to make sure our customers are paying the most competitive rates.  Today, I wanted to talk about a new discount called Telematics.

A telematics insurance system offered by an auto insurer collects info about your mileage and driving habits. You may get car insurance discounts for driving safely- incentivizing safe driving behaviors.

If your policy isn’t using telematics to base your rates then it is using, in part, socioeconomic characteristics such as education, occupation, and credit history.  For more information on how traditional insurance rates are obtained visit our blog titled “What Factors Determine Car Insurance Rates in Missouri?”  Insurance telematics may reduce or possibly eliminate the reliance on these outdated rating tools to allow for real-time intervention.

The technology of sharing GPS information from a vehicle to a database isn’t all that new.  Any car with a navigation system has technology-enabled GPS.  The telematics insurance system transmits driving and vehicle information to track things such as:

  • Braking
  • Acceleration
  • Time of Day
  • Speed

Travelers reported that safe driving habits can lead to savings of up to 30%, while riskier driving habits may result in a higher premium.1

Telematics Insurance

Tracking

Each company has its own app to track your driving habits.

Progressive- Snapshot®

Safeco- RightTrack®

Travelers- IntelliDrive®

Nationwide- SmartRide®

Each company will have you turn on the monitoring for a trial period.  After the completion of the trial, you will be able to view and review your results.  At that point, you can opt-out or cancel the monitoring or continue on for the discounts.  Just for signing up for the trial, you will earn a small discount.  The apps use a very small amount of your phone data, the companies don’t share any data they collect and you approve all of your driving trips (driving vs being a passenger.)

The IntelliDrive® App also logs a distraction-free streak.  Encouraging hands-free and text-free driving.  Using IntelliDrive®, Travelers said 85% of their customers received a discount, while only 5% of customers had a surcharge.

I would recommend the driving apps for any parent with a young driver.  You can log in and see their trip details, speed, time of day, etc.  I know when my kids were first driving this would have taken a lot of stress off of my kids and I.

Car Services

I would not recommend telematics insurance for a driver of a car service, especially if you are driving in a city.  Frequent starting and stopping of traffic and drop-offs, plus the late nights, may not be advantageous for the telematics insurance discount.  I would advise you to check out some other safety features to look for in our recent article, click here to view.

Improved Driving Habits

Learning about your driving patterns and habits might be fun!  Knowing that you are more prone to an accident because you are an aggressive driver who changes lanes frequently or driving over the speed limit could be interesting to learn.  How much could you improve over your trial period?

Future Discounts

Telematics Insurance could allow insurers to capture driving data and translate that to the client’s homeowners policy.  Safe driving habits and regular car maintenance could mean youare a are proactive homeowner to responding to property maintenance issues.  Companies may also suggest IoT sensor devices, which could catch water backup or leaks before permanent damage is done.

If you have any questions about Telematics insurance or would like to add it to your policy, please give me a call.  I would be happy to help.

We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation. We are able to provide you with information but not guidance or advice related to federal benefits. Our firm is not affiliated with the U.S. government or any governmental agency.  Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and The Resource Center are not affiliated companies.

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Sources:

https://www.travelers.com/car-insurance/programs/Intellidrive

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