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CAR INSURANCE

Know How to Slim Your Car Insurance Premium Telematics Insurance

Janhavi Shinde Janhavi Shinde 25 October 2016

Heard about the new Telematics Insurance policy? How would the Telematics device help slim your car insurance premiums? Read here for details!

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I recently learned about a new gadget that lowers car insurance premium. The magic device is called as the Telematics device or a Black box.

A Telematics device or a Black box is a gadget to monitor one’s driving. It gets installed in your car to get going. It tracks information about your driving and sends the data to your Insurance Company.

It’s a fool-proof method to prove to the Insurer that you are a safe driver! (I sure hope you are!)

It's in the best interest of the insurance companies to incentivize safe driving. After all, safer you are as a driver, the lesser chance there is that you'll file a claim. Hence, insurance firms are give discounts to encourage safe driving! Many insurance companies have started giving discounts just to have the device installed.

Where is the Device Installed

The Insurance Company sends an engineer at your door-step. You can schedule the visit at your home or work. He will install the smart device as per your convenience behind the dashboard of your car.

A Million Dollar Question. How does it Work?

You may be curious to know the size of the device and the space that’s gonna occupy in your car! But you would be surprised to know that this unique drive smart technology called “Telematics”, is a small palm sized gadget or a system that is installed in your car by your Insurance Company. It monitors, records and provides all the information about your driving behavior to the Insurance Company which helps them to access the risk and work out the premiums of your car insurance.

Don’t know What Information the Device Records?

The telematics device helps in recording and pulling out the below data:

  • The total number of times you break and perhaps accelerate sharply
  • Total distances and directions you travel by your car
  • The speed of driving your car on different roads
  • The exact time of the day or night you drive (the risk is high during night)
  • How you change lanes

Understand the Perks of being a Safe and Good Driver

By now, you must have gauged that the insurance companies have introduced the telematics car insurance to reward you for being a safe driver.

  • You can succeed for discounts on your car insurance premium which would really help you save some bucks. For example if you put fewer miles on your car per day, you may earn a handsome discount on renewal.
  • Apart from qualifying for discounts on your car insurance premium, this might also help you become a better driver. This device make things easier by recording your driving behavior additionally which also reflects online on the Insurance Company’s portal.
  • You can view the data online that the Telematics device has provided to the insurance company and drive more safely. This in turn will help to improve your driving behavior and become a more responsible citizen. This equivalently also improves the Fuel Economy therefore adding to your extra miles.
  • Scared of someone keeping an eye on you while you drive? Yes, you guessed it right. Telematics device is like having a watchman sitting beside you while you drive. The telematics device is utterly safe and doesn’t harm your car or its warranty at all. It only helps you save your money and earn those extra miles by encouraging good driving.

Do You Wanna Buy the Telematics Insurance

Telematics can certainly help you lower your car insurance premium on renewals only and only if you are a safe and responsible driver who knows all the tactics of good driving skills.

The Problem

You better think 100 times, if you are a bad driver before giving a thumps-up to the Insurance Company to have the smart box installed in your car. Your bad driving skills would be recorded by the insurer and instead of reducing premiums, you may end up having to pay additional premiums. But, remember there is also a plus point to have the telematics installed. You can certainly improve your driving behavior by opting for this technology.

See What’s Right for You

I would suggest, for big car owners to go for the Telematics insurance since it would directly affect the premium. For example, if you own a Merc or a BMW or an Audi, you know your car insurance premium is going to be relatively high. Thus, the cost of installing the Telematics device would be negligible. On the other hand if you own a smaller car like a Hyundai I10 or Maruti Suzuki Alto, you know your premium would be nothing more than Rs. 7,000/- approximately. Hence installing this magic box would only add to your expenses.

So while comparing car insurance policies you may consider telematics insurance for your car by weighing the costs tangled and the influence it may have on your premium.

Many car insurance companies in India would be introducing the Telematics insurance in the near future. Let’s see how positively or negatively the consumers opt for this new gadget. Whether they love it or loathe it, the use of telematics insurance would be shared by the consumers as soon as they start using this instrument.

Janhavi Shinde
Written by Janhavi Shinde
Right from being a Flight Attendant to a Banker and now to a Content Writer, she has tasted success in all the fields. The kinda girl who loves pets and knows how to manage difficult people and events.