Car Insurance

Discover Location-Based Car Insurance with Telematics

There’s such a wide variety of insurance options available to drivers.

With this in mind, we felt it’d be beneficial, for both experienced and new drivers, to understand the ins and outs of location-based insurance with telematics.

In this article, you’ll learn what location-based telematics insurance is, as well as the benefits it can provide for policyholders.

Read on to find out more.

What is location-based telematics insurance?

A highly popular form of insurance amongst many drivers is telematics insurance, which uses location-based software to analyze driver behavior, which is then used to adjust your policy premiums.

Your car telematics insurance uses technology known as telecommunications (cable, phone, and cellular connections) and informatics (systems used to structure data), to provide continuous data to your insurer regarding your driving.

The telematics usually comes in the form of things like chips installed into your car, or software you download onto your phone.

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Using location-based software, your telematics will report on various aspects of your driving, such as the speeds at which you drive in comparison with speed limits, how safely you handle things like turns or parking, and whether you’re often making harsh stops on the road.

Expert telematics can offer the most accurate data using location-based technology, and therefore, your insurer will have a vivid picture of how well you’re driving.

This will then allow them to adjust your insurance premium accordingly. The safer you’re driving regularly, the less likely you are to have an accident, and your insurance can therefore be lowered.

What are the advantages of telematics insurance?

There are many advantages of taking out a location-based telematics insurance policy, such as:

  • Premiums tailored to your driving

With telematics insurance, you’ll be offered a premium which is heavily based off your unique driving behaviour, to give you a fair policy that’s tailored to you.

It’s often the case that many drivers who fit into a particular demographic – such as newly passed drivers or those of a younger age range – are given much higher premiums, due to their statistical likelihood of being involved in an accident.

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However, telematics insurance takes assumptions out of the question, and gives you a policy that’s backed by accurate evidence of your specific driving behaviours, not those of your similar group.

This ensures you’re given a fair chance to display your safe standard of driving, so that insurers know you’re less likely to have an accident, and can therefore give you lower premiums in your policy.

  • Accurate readings of circumstance

Telematics insurance is also beneficial since its location-based software can easily asses the particular circumstances of your movement.

With its accurate analysis, you won’t have to worry about having any journeys reported which you aren’t the driver for. This could be a particular bumpy bus ride, or maybe a taxi driver who’s driving unsafely.

The telematics is designed to distinguish between these scenarios, so you’ll only be held accountable for data collected when you’re actually the one driving.

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This helps you gain a fair report on your driving behaviour, without the worry of any undeserved data recordings.

  • GPS tracking on your vehicle

Telematics can also be a great help for when you’re involved in an incident and require roadside assistance.

This could be, for instance, an accident with another vehicle, or maybe your car breaking down in an unknown location.

Since your software is location-based, your global positioning system (GPS) will easily pinpoint your location, so not only can you call out road assistance quicker, but they’ll have a more accurate idea of where you are.

This helps you remain safe in the event of any unexpected incidents, and allows you to always be aware of your location.

Now that you have a greater understanding of the benefits of location-based telematics insurance, why not make it your next go-to policy?

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