Benefits Of Telematics Based Car Insurance

The technological boom we are assisting in the recent period of time is felt everywhere.  And the auto insurance industry makes no exception. The latest innovations in the auto insurance world include the telematics devices coverage programs. These programs typically names Usage Based Insurance, allow the insurance companies to track any traffic movement of the driver. So, if you are afraid of the “Big Brother”, this policy is not for you. But there are many benefits of telematics based car insurance.   Find out more and get free quotes from the best automobile insurance companies.

autoNEW - images (3)The most obvious benefit of UBI is that it gives the policyholder almost total control over their premium costs. It rewards those who already drive safely and motivates the other drivers to be more careful in order to lower premiums. Official data shows that increased use of UBI improves driver behavior. Given the general societal benefit of increased road safety, it may be expected that policymakers will develop more services, offers and policies in order to stimulate the use of UBI insurance

The use of UBI may also reduce insurers’ dependency on other historical rating factors that at one time led to regulation against the use of certain rating factors, like in the famous cases of credit scores and geography.  Using those factors led to many accusations of discrimination from both policyholders and authorities. Using only actual skills and driving habits recorded by devices will approach rate-making to individuals, rather than demographic groups and statistical groups.

Installing telematics devices will prove beneficial in many other surprising ways. Let us assume that your car was stolen. But it was fitted with telematics.  This will make its tracking easier and in very short time you will get your car back. All thanks to telematics.

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