Telematics: Car Insurance That Results In Safer Drivers

We were all new drivers at some point in our lives. Our guardians or even older peers would often tell us to be careful, be safe, and make good driving decisions. We were likely very cautious and interested in being the best driver possible.

However, after some time behind the wheel, we become more confident drivers and can find ourselves stretching the rules and boundaries of the road. But what if you can save money by simply being a safer, better driver?

With a usage-based tracking device, insurance companies offer their drivers ways to save on their insurance premiums. These devices force drivers to make smarter driving decisions. What is a smart ride device? Let’s dive into these gadgets and see how they can save you money every month.

Usage-Based Insurance Devices: How Do They Work?

Everyone loves cool car accessories, but one that gets overlooked often is usage-based insurance tracking devices. With multiple auto insurance companies offering to track driving habits, these neat devices record your driving patterns. In turn, the companies grant savings on your insurance costs for safe driving.

Signing up for a usage-based tracking device probably seems like a no-brainer, right? If you drive safely, you’ll earn a few extra bucks. However, what constitutes safe driving? These rules can often be strict, and if you currently drive recklessly, your rates may actually go up.

Even if this is the case, this device is a fantastic product to promote safer driving among consumers. Usage-based insurance tracking devices give drivers a tangible reward for making better decisions while behind the wheel.

Although actuarial tables are not a thing of the past, these tracking devices steer away from simple demographic data, focusing on a driver’s driving habits and patterns. Insurance companies offer two kinds of tracking, a dongle that you fit under your car’s dashboard or a mobile app. These devices can track several different routines that will affect your driving score.

What Do Insurance Tracking Devices Track?

There are several habits a driver can exhibit that will affect their scores and overall determine how safe a driver they are. Insurance companies characterize these habits and data as higher risk factors that lead to accidents.

Some data that is collected and closely monitored are:

• Driving patterns (time of day, length of time)
• Erratic driving decisions (corning, tailgating)
• Fast acceleration
• Hard braking
• Mobile device usage while driving
• Speed

All factors mentioned above are considered when collecting data for various insurance companies. As of now, several insurance companies provide some type of tracking devices:

• Allstate – Drivewise
• American Family – KnowYourDrive
• Farmers – Signal
• GEICO – DriveEasy
• Nationwide – SmartRide
• Progressive – Snapshot Discount
• State Farm – Drive Safe and Save
• Travelers – IntelliDrive
• USAA – SafePilot

Usage-Based Insurance Devices: Do You Have What It Takes?

So do you think you can pass the test and earn yourself a discount on your monthly insurance premiums? Many consumers feel there are pros and cons to these devices, but no matter what, these devices can promote safer driving habits on our roadways across the country.

They incentivize safe driving habits, lowering your chances of getting a speeding ticket or causing an accident. With so many insurance companies offering similar devices and apps, these programs are worth looking into and crunching the numbers to see what your savings can be.