How to Use Telematics to Lower Your Auto Premiums Over Time 

What if you could lower your premiums without really changing your driving habits? 

Like everyone else on the road, chances are you would like to pay less for automobile insurance. While there are multiple ways to lower your monthly bill, some are more reliable than others. And something that many drivers have never even heard of is one of the most reliable methods. 

Telematics significantly impacts auto insurance and can help lower premiums for safe drivers. How do telematics devices work, though, and what role do they play in how much you have to pay? InsureOne not only has the best car insurance, you can find out everything you need to know about ways to save money. 

What Is Telematics and How Does It Work? 

“Telematics” refers to various types of equipment that can be installed in your automobile. This technology communicates with your insurance provider, providing real-time updates on your driving habits. Due to its high utility, many carriers consider this technology the future of insurance. 

Insurers love this technology because it gives them the most accurate information on what drivers are doing behind the wheel. Additionally, consumers love this technology because it helps them save money by driving safely, something they were (hopefully) already doing. 

How Driving Data Is Collected 

It begins with your carrier installing a telematics device or providing you with a smartphone app (more on this soon). Such apps or devices provide data to your insurer about driving habits, including how often you speed, brake, and use your cell phone. They also monitor the time of day when you are most likely to be on the road. 

Types of Telematics Devices and Apps 

Telematics (often referred to as usage-based insurance) may collect data via smartphone apps, electronic tags, or plug-in devices. Whether your carrier uses a sophisticated car insurance tracking app or something more traditional, this technology will collect data about your driving habits. 

How Telematics Can Help Lower Your Auto Insurance Premiums 

Why would someone want their carrier to know their exact driving habits? The short answer is that they want to save money by driving safely, providing their insurer with proof of their adherence to the rules of the road. 

Remember, your monthly bill is based on several factors, including the carrier’s assessment of the risk associated with insuring you. In this way, this technology can reduce auto premiums by qualifying you for various safe driver discounts. 

Rewarding Safe Driving Habits 

Assuming you drive safely, telematics devices can demonstrate to your carrier that you are a lower risk to insure. This will allow them to reduce the auto premiums you pay, while also potentially helping you qualify for more discounts. 

How Insurers Calculate Discounts 

Carriers offer discounts for many things — you may already qualify for a safe driver discount if enough time has gone by without you filing a claim or getting a moving violation. But with usage-based insurance, you may be able to qualify for other safety discounts, further reducing how much you have to pay. Your insurer’s usage device will also tell them how much you drive, possibly lowering your bill based on how annual mileage affects your auto premium. 

The Benefits of Telematics for Families 

Telematics auto insurance is obviously great for safe drivers who want to reduce their monthly premiums. However, it can be even more beneficial for families with policies designed to protect multiple drivers. 

Family car insurance can be expensive, especially once you have a teen driver (or more than one) on the road. Below, you will learn more about how these programs can help the family save, all while encouraging safe driving habits among those who need them the most. 

Monitor Teen Drivers and Build Safe Habits 

Every parent knows the concern of putting a teenage driver on the road. Fortunately, telematics programs can help parents and carriers alike monitor teens’ driving habits. This will inform parents about any behaviors behind the wheel that their child needs to work on, while encouraging teens to develop safer driving habits. That, then, can help reduce auto insurance costs for teens. 

Real-Time Trip Feedback for Safer Roads 

As the old adage goes, you cannot fix what you do not know is broken. Once there is concrete feedback about real driving habits, parents can work with their teens to build the safest possible driving habits. 

How InsureOne Helps You Get the Most From Telematics 

It is essential to find a carrier that offers the most competitive premiums and the best discounts for drivers. Fortunately, the best carrier for your needs also specializes in usage-based coverage. 

Telematics encourages safer driving. Furthermore, most carriers support multiple drivers, helping you lower the family car insurance bill. At InsureOne, we can walk you through how to find the best insurance at an affordable cost. 

Programs That Encourage Safer Driving 

Telematics are designed to help you and your family learn more about the driving habits you may take for granted. In many cases, making just a few small changes can help to dramatically lower your premium, all while making your family that much safer. 

Support for Multi-Driver Families 

Telematics programs do not have to be limited to a single driver. In fact, to lower your overall policy cost, everyone on the contract should use telematics. That way, everyone can save together while being safe together. 

Drive Smart, Save More — Learn About Telematics 

Now you know how telematics auto insurance works. This includes what it is, why it is essential, and how it helps you save. But do you know where you can find a carrier just as dedicated to safety and savings as you are? 

Here at InsureOne, we specialize in providing white-glove service, the best insurance with A+-rated carriers and financial protection. When you are ready to make your family safer while saving money each month, get a quote online. You can also pick up the phone and give us a quick call at 800-836-2240. Finally, you can always find an InsureOne office near you. 

FAQs 

How Much Can I Save With Telematics? 

Most drivers save around 10%, though some drivers save as much as 30%. 

Does Telematics Track My Location? 

Yes, they track your location while you drive. This may help you discover just how much your commute determines your auto insurance rate. 

Can Families Use the Same Telematics App? 

While the carrier may recommend using the same app, it will likely need to be installed on different smartphones to track the behaviors of various drivers. 

How Does InsureOne Utilize Telematics? 

InsureOne provides apps that track driving behavior, helping you qualify for safe driving discounts.