Car insurance providers consider multiple factors, such as a car’s age, condition and owner’s driving habits, before setting the premium. However, with the evolution of the automotive industry and the inception of connected cars, the premium-determining factors have changed. One such advancement is the usage of telematics in car insurance.
Telematics help insurance providers decide premiums based on vehicle usage and safe driving practices rather than accident risk. Let’s dive a little deeper and elaborate on how telematics car insurance works and who should opt for it.
Telematics Car Insurance Working
The inclusion of telematics in cars is not only for tracking the location, but it also helps in the early detection of major wear and tear in the vehicle. Moreover, insurance providers use data from telematics to calculate premiums.
Typically, a mobile app or a plug-in device is used to track the vehicle’s location. Alongside GPS and on-board diagnosis, the telematics also use information from different car sensors. The collected information is then used to evaluate the driver’s driving habits and risk of accidents.
There are two different types of telematics car insurance offered by the insurance provider.
- Driving Habits: In driving habits insurance, driver’s habits like braking, accelerating and tailgating are considered to calculate the premium.
- Mileage: The mileage insurance only considers distance covered and vehicle usage.
On the basis of telematics data, drivers can avail of exclusive discounts and can even lower the premium. However, in case of bad driving habits, the insurer can also increase the premium.
Why You Need Telematic Motor Insurance
Telematics car insurance offers multiple benefits including lower premiums and exclusive discounts. It is often recommended that drivers follow safe driving practices and have lower mileage.
Following are some more reasons elaborating on the significance of telematic auto insurance.
- Lower Premiums: The data provided by the telematic regarding safe driving practice equates to a lower premium contrary to other insurance types.
- Safe Driving: Continuous monitoring by insurers encourages drivers to opt for safe driving practices reducing potential accident chances.
- Immediate Assistance: Insurers get real-time data through telematics and can assist immediately in case of an accident.
- Exclusive Discounts: A wide range of exclusive discounts are offered to the owners by the insurer.
How Much You Can Save on Telematics Car Insurance
Drivers opting for telematics car insurance can save a significant amount of money. At first, 5 to 10% enrollment discounts are offered by the insurer. Furthermore, a 20 to 25% safe driving discount is also offered. Combined, the telematics car insurance costs are less than 30% in comparison to other types of insurance.
FAQs
What does telematics mean in insurance?
Telematics car insurance is a type of insurance that tracks driving habits and mileage.
What does telematics do in a car?
Telematics is a device that retrieves real-time data from the car and provides it to the manufacturer or insurer.
Can you turn telematics off in your car?
No, telematics devices are built-in and it is difficult to turn them off on your own.
This was all about telematics car insurance in the UAE and how it benefits the driver. Telematics insurance not only comes with a low premium but also promotes safe driving practices. That said, these smart driving techniques also increase the fuel efficiency of a vehicle, lowering the monthly cost of filling up a car tank.
Telematic insurance uses a device namely telematic that is catered by connected cars. Therefore, telematics car insurance is only available for modern vehicles. If you are still driving an old car costing you a higher insurance premium, browse through these used cars for sale in the UAE and choose a modern vehicle for yourself.
Stay tuned to dubizzle’s auto blog for more information on insurance premiums.
Related Posts
