There are approximately 26,000 accidents in Kansas every year — at least some of those caused by bad drivers. But if you don’t have a telematics system, you could get lumped into those bad drivers. Telematics is a system that makes it easier for good drivers to get better rates. Here’s what you need to know.
Exactly What is Telematics?
Telematics is a process by which devices track a driver’s habits. At its most basic, you download an app on your phone. The app is triggered whenever you drive, by detecting the speed at which you’re moving. From there, the app determines how fast you generally drive, whether you make cautious driving maneuvers, and whether you may be an overall risk. If you’re a good driver, the app will detect that. You’ll get better rates as a result.
It’s not always apps, either. There are even more precise telematics systems that use a device that plugs directly into your car. But the end result is the same. You get the rates that are most applicable to you.
Well, What If You’re a Higher Risk Driver?
Are you worried that a telematics system could detect that you’re a bit of a higher risk driver? Well, that’s not bad either. The other side effect of a telematics system is that it can help you become a better driver.
You might not realize that you’re speeding or that you’re cornering too fast without a telematics system. But a telematics system is going to break down the errors that you make with your driving, and you’ll be able to improve. Once you improve, your rates will get better, too.
So, a telematics system might reveal that you’re a low-risk driver or a high-risk driver. But either way, you have the opportunity to become a low-risk driver, and you have the opportunity to become safer for yourself and your family.
And it should be noted that your driving isn’t the only thing that’s considered. They will also consider things like where you drive (such as safer neighborhoods rather than rural locations) and how much you drive (such as a daily commute to school or frequent road trips). So your environment and general driving habits matter, too, and can reveal the need for lower rates.
Who’s Using Telematics?
A lot of national chains are using telematics today. Progressive, Travelers, Safeco, Nationwide, and more. In Kansas, many companies support telematics solutions.
Telematics solutions are good for both the insurance company and the drivers. For drivers, they’re no longer lumped into demographics and can get better rates for more responsible driving. For insurance companies, they can judge their risk better, charging their best clients lower rates, and their higher risk clients higher rates. Pricing insurance accurately is the goal for the insurance company, even if that means that some people get lower rates.
Finally, telematics can also be used for claims management because it can be used to provide additional data regarding claims. Telematics data is acquired and stored in real-time, which means it’s even useful in the event of an accident. It can be used to show things such as you being entirely stopped in a parking lot when being hit.
Telematics is part of the data revolution and an excellent way for people to get insurance rates that are better adjusted for them. To learn more about how telematics is being used in Topeka and Burlington, KS, contact Integrity Insurance today.
