Underwriters typically base their premiums on a variety of assumptions when someone is shopping for car insurance. A new driver may be offered a high-priced quote for car insurance to reflect the lack of experience.
Technology is constantly changing the world we live in. Although the concept of smartphones, motion-sensitive game consoles, and 3D cinemas seemed unlikely a decade ago, they are now part of our daily lives.
So why do some insurance companies continue to set premiums based upon theories and assumptions? Can technology be used by customers and insurers?
Telematics technology has made car insurance more modern.
Telematics insurance is the installation of a “tracking device” (also known as a Clear Box smartbox blackbox, smartbox, or clear box) on a policy holder’s vehicle. The device transmits data to the insurer about the driver’s driving habits upon activation.
If a customer of telematics drives safely, they may be eligible for a reduction in their car insurance premiums when they renew their policy. Telematics offers many other benefits, including lower prices.
Clear boxes that collect data about a policy holder’s driving habits can be viewed online.
Some companies feel that providing this information is insufficient and will offer drivers advice to make them safer.
A UK car insurance company found that a driver with a telematics system fitted to their vehicle is 20% more likely to be in an accident than someone without it.
Distance and Time
A telematics policy’s price will vary depending on how often a driver drives. Accidents involving vehicles are more common at certain times of the day. If a motorist does not drive during rush hour or between 10pm to 4am, their premium may be reduced. This is because they have been safe driving.
A telematics policy is also beneficial for motorists who only use their vehicle occasionally or for short distances.
Assistance in the case of theft
Nobody wants to become a victim of vehicle theft. Telematics technology is able to help drivers recover their vehicle. Telematics technology can help a driver recover their stolen vehicle. It monitors the owner’s driving habits and records the car’s location.
In the event of theft, an insurance company should be able contact police to start monitoring a vehicle that has been stolen. Telematics should allow the owner to quickly recover their property.
Parental peace of mind
Many newly licensed motorists want to drive after passing their driving test. Driving is often an enjoyable activity, but parents might be anxious about their children experiencing the dangers of driving.
Telematics technology can provide driving information to policyholders, but some insurers allow parents to see this data.
Parents can feel more at ease knowing that their child is driving safely and responsibly. Telematics technology can detect if a vehicle has been involved in a traffic accident. This will allow the vehicle to be re-assessed or provide emergency assistance, if necessary.
Claim for an accident
Telematics can detect information about a collision if a motorist crashes their car. This includes the:
- The accident occurred at the following times:
- The vehicle is subject to the force of impact
- The vehicle’s direction at the moment of collision;
- Speed of the vehicle before impact and after it.
Telematics data may be used to prove that a driver was involved in a traffic collision.
It’s not so great for boys (or girls) who race.
Telematics may be appealing to most drivers. However, black box policies may not be for you if your car is regularly driven at high speeds, long distances, or late at night.
You should look into vehicle coverage with a telematics insurance if you want to demonstrate your driving skills and be a responsible and safe driver.