If you have a usage-based program with your auto insurance provider, you can save money on car insurance. Telematics apps could be a great option if you are looking to reduce your auto premium or if you don’t drive as often as you used to.
What are telematics, and how can they be used to insure you?
Usage-based auto insurance is a type that uses telematics to power its vehicle technology. Telematics tracks your driving habits and helps you plan for the future. Telematics programs use GPS-enabled devices to gather your driving data. Some programs use an in-car device, known as a “dongle”, while others use apps that use GPS tracking capabilities embedded into smartphones. Smart technology is used by the car insurance app to determine when you are behind the wheel.
Telematics is a type of usage-based insurance that monitors factors like speed, smoothness, time, day, and road type. These factors can be used to determine your driving quality. This can be an excellent tool for novice drivers like teen drivers who are just starting to learn the ropes. The data can be used to track your progress and help you maintain good driving habits.
How much can you cut your car insurance costs?
Participating in a telematics program or car insurance app program can help you save money on auto insurance. To calculate a discount percentage, insurers will use the telematics application to collect your driving data. This can then be applied to your insurance premium.
Participating in a usage-based program can help customers save between 10% and 30% on their auto insurance. Many insurance companies offer discounts for customers who enroll in telematics programs. This is in addition to the savings that you can make while driving.
Your driving skills can help you get a discount
It’s not difficult to see how insurance companies could put a price on safe driving habits. Insurance companies reward safe drivers who do not engage in potentially dangerous driving habits by using proven bad driving behavior.
These are the top driving habits that will help you save money on your car insurance using a telematics application:
- To allow for adequate braking time, keep your vehicle at a safe distance.
- Before turning or changing lanes, make sure you have your mirrors on and use your turn signal.
- You must obey the speed limit when you’re behind the wheel.
- You can improve your driving skills by checking your score often or continuing to do what you are doing if your score is good.
These are some common bad driving habits that can affect your telematics score, and increase your chances of being in an accident:
- Distracted driving includes texting and eating behind the wheel.
- Tailgating is when you drive too close to someone in front of your.
- Last-minute braking, or hesitant stopping.
- Speed limit exceeded
- You don’t need to use your turn signals.
To receive the safe driving discount, keep your insurance app or dongle connected for the duration of the monitoring period. Programs typically last between 90-180 days. Some programs are available for the entire policy term.
There are other ways to save money on auto insurance
There are many ways to save money on your auto insurance. You can save money by bundling your auto insurance with your renter’s or home insurance. Switching to a lower-cost car or a higher deductible could be an option.