Can I Install Telematics to Get a Car Insurance Discount?
Last Updated on September 24, 2020
A recent trend in car insurance is telematics, or driving tracking. Many New York car insurance companies give their customers the opportunity to install telematics devices in their cars and earn a discount. If you’re interested in saving money on your car insurance, telematics can be a good way to do so. Here’s how telematics works and what kind of discounts you can earn.
How Does Telematics Work?
There are two ways that car insurance companies offer telematics to their customers. In most cases, you’ll download an app on your smartphone that tracks your driving when you’re in the car. You can turn the app off when you are in the car as a passenger. These apps use your phone’s location services and other sensory technology to pick up on your driving habits. Some companies also will give you a dedicated tracking device to put in your car, instead of using your smartphone. These tracking devices are often a little more accurate than using your phone. However, there can also be a bit of a learning curve to using a device specifically for telematics.
Once you have your telematics device set up, your car insurance company will give you a score based on how safe your driving is. These scores are usually out of 100, with higher scores indicating safer driving. When you make unsafe driving decisions, you’ll lose points, and when you complete trips with safe driving habits, you’ll gain points. This score is used to calculate the discount you’ll receive on your bill.
How Can I Earn the Telematics Discount?
Insurance companies will usually give you a discount just for signing up for telematics. This discount will kick in as soon as you start tracking. When you practice good driving habits, you can earn an even bigger discount. There are specific driving habits that insurance companies look at with telematics. These include:
- Cell phone use. If you’re going to be tracking your driving on your phone, the app will track your cell phone use as you’re in the car. Using your cell phone while driving can be extremely dangerous – it’s currently one of the leading causes of car accidents. When you text or use other apps on your phone while driving, you’ll lose points on your driving score.
- Hard braking. Ideally, you should be braking and speeding up gently whenever possible. Hard braking is often indicative of a lack of control of the car, and can lead to accidents. Your telematics device will track how quickly you speed up and slow down, and affect your points accordingly.
- Speeding. We all know speeding is dangerous, but sometimes it can be easy to get caught up in traffic and go over the limit without realizing it. Your telematics device will always track your speed, and if you’re consistently speeding, you can lose points. Using a telematics device can help you be more aware of your speed and drive more safely.
- Time spent driving. Statistically, the more you drive, the more likely you are to get in an accident or file a claim. Telematics devices track how often you drive, and if you drive very frequently, you could lose a few points on your overall score. If you need to drive frequently, don’t worry – this won’t affect your score as much as some of the other factors that the device tracks.
How Much Is a Telematics Discount?
The amount of a telematics discount is going to vary widely depending on which company you’re with, as well as the driving score. According to the Zebra, the average telematics discount in New York is $34. However, the best drivers can earn well over $100 off their premiums with telematics. Many people wonder if telematics can make your insurance premiums go up. This depends on which company you are with. Most companies will not increase your premiums because of your telematics results, but there are some that will if your driving habits are particularly unsafe. When you’re signing up for telematics, be sure to ask your insurance company if your rates could go up because of it, as well as the maximum discount you can earn. It’s important to be very clear on how telematics can affect your premiums before signing up.
Why Do Insurance Companies Offer Telematics Discounts?
It makes sense for insurance companies to offer telematics discounts to their customers. By giving drivers the opportunity to save money, they also encourage them to drive safely. This decreases the number of insurance claims filed, which is financially advantageous for the insurance company. Telematics devices also help insurance companies learn more about how drivers are on the road. This enables them to offer better service to their customers.
Which Companies Offer Telematics?
There are many companies that offer telematics discounts in New York. Some of the most popular include Progressive SnapShot, GEICO DriveEasy, and Allstate DriveWise. However, these are just a few of the insurance companies that offer telematics, so it’s worth asking your insurance provider if that’s an option for you.
If you’re looking to save money on your car insurance, telematics can be an easy and reliable way to do it. If you’re a good driver, telematics can help you overcome high premiums due to poor credit or lack of driving experience.