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Four Reasons to Consider a Telematics Based Program to Lower Your Auto Insurance Rates

While pricing should never be the only reason for selecting an insurance policy, safe drivers can gain an advantage for their good driving habits when they choose to use a telematics-based program.

With the ongoing development of technology in cars to help us drive safely, some insurance companies are offering the opportunity to lower your auto insurance cost based on your driving behaviors. Here are some compelling reasons to consider using telematics if your insurance company offers the option to do so:

The savings. Who doesn’t like to save money, especially on a household expense that you know you need? Telematics offers potential savings based upon safe driving habits.  In some cases, you may get an additional discount for enrolling. These savings can add up over time, depending on your insurance carrier.

The opportunity to benefit from good habits. With a telematics-based program, your driving behavior is monitored. Participation may raise your awareness of your habits, giving you the chance to learn from them and drive more safely. If you’re a parent of a teenage driver, a program like this may help you coach your teen. In general, you can use telematics to have more control over and potentially reduce your auto insurance expenses.

These programs are easy to sign up for and use. Some telematics-based programs operate through an app on your cell phone. Each insurance company has its own manner of enrolling you.  In general, these programs are simple to join and don’t usually require you to do much more than sign up.

The program is voluntary. Insurance companies are encouraging customers to voluntarily try a telematics-based program because it can help heighten drivers’ awareness of their driving behaviors and potentially lead to their adoption of safer driving habits. The knowledge you gain from participating in a telematics-based program can help you learn more about your own driving habits (along with your children), which could, in turn, help you take steps towards becoming safer behind the wheel.

How Does a Telematics Program Work?

In general, a telematics-based program collects information about your driving using a specific device or mobile app technology.  With mobile app technology, for instance, you download the telematics app, enable some features on your mobile phone, and begin to drive. Then the technology begins to collect data related to your driving habits as you drive.

Typically, these programs are monitoring a handful of variables for a short period of time. As an example, the Travelers IntelliDrive® app is a 90-day program which captures your driving habits in that time.

There are four variables that Travelers product, IntelliDrive, uses to generate a score to apply to your premium. These factors, or a combination of them, were chosen because they have been shown to increase the risk of an accident:

  • Time of day: When you drive can be as important as how you drive.
  • Speed: Keep your speed in check so you have more time to react.
  • Acceleration: Smooth acceleration is easier on your car and good for your score.
  • Braking: Drivers who anticipate situations have fewer hard brakes.


How to Sign Up

Contact us or your insurance provider to review your options.