How Telematics Can Help Reduce Your Car Insurance Costs

If you are looking for ingenious ways of reducing your car insurance costs, then there could be an answer available for you. It’s called telematics, and we’re going to take a look at what it does and how it can help you lower those premiums.

TelematicsWhat Is Telematics

Telematics is a recording device that sits in your car and records data, in a similar way to an aircraft’s black box. It is used by people to prove to their insurance companies that they are safe drivers and is often known as ‘black box insurance.’

Who Uses It?

Telematics has been used by large-scale companies with fleets for many years now. It helps businesses keep tabs on their driver’s’ actions while out on the road, and encourages them to drive in a safer and more responsible manner.

There are a couple of reasons why so many embrace this black box insurance. Firstly, when a driver knows they are being traced, they will think twice about breaking the speed limits or making thoughtless decisions. That automatically means the employer will face fewer expenses for repairs and fewer vehicles off the road.

Secondly, they can prove to the insurers that their drivers are responsible and that they take action on those who aren’t. Thus, it will lower the business’s van fleet insurance, and reduce their overall costs. However, it isn’t just companies that are using this technology – consumers are starting to embrace it as well.

Young Drivers

Young drivers are perhaps the best example of when using black box insurance can work well. Whenever you pass your test and haven’t been on the road for long, you will be more likely to have an accident. That pushes your premiums up, and it can take a long time – a few years or so – to prove your safety as a driver.

However, if you have telematics installed, you can deliver proof to your insurance company that you do drive in a safe way. And that means that you can cut your insurance costs far quicker.

Older Drivers

No matter how responsible you are, there will always be times when you have an accident. Even if it is clearly not your fault, it can take a while for the insurance company to sift through your claim and the other party’s claim. All that time can cost you money, and also your livelihood – especially if you use your vehicle for business.

With telematics taking readings from your car, you can instantly prove to your insurers that you were not to blame. Let’s say that you are at a standstill at a junction, when somebody ploughs into you from the side. How can you prove you didn’t creep forward onto the road and cause the accident? Well, your black box will have recorded the fact that you had stopped. The other party won’t have a leg to stand on, and the insurance claim will be completed without the need for a lengthy investigation.

Interested? Get in touch with your insurance company about getting telematics installed. You never know how much it could save you.

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