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Telematics And Car Insurance

Telematics insurance, sometimes called black box insurance, pay-as-you-drive or pay-how-you-drive insurance, is a rapidly growing area of the industry that’s revolutionizing the way we think about car insurance. Now technology is giving insurers the chance to see just how skilled a driver really is. By monitoring their customers’ motoring habits, underwriters can increasingly distinguish between drivers who are safe on the road from those who merely seem safe on paper. Many think that “telematics insurance” will become the industry norm. Read the following lines to find out more and visit our website for free auto quotes online.

# money-carIf you take out a telematics insurance policy, the insurer will fit a black box to your car – usually at no charge. The black box is often attached to your dashboard. In addition to monitoring where and when you drive, it also records how you handle the car – acceleration, braking, cornering, and so on. This means that the telematics insurance provider will know whether you drive in rush hour, at high speed and whether you brake harshly and frequently. Telematics insurance can lead to cheaper premiums. Telematics insurance companies reckon they can cut the average car insurance premium by about 25%.

The standard insurer does not take into account your driving habits. For example, it will not know that you avoid motorways and never drive at night. But the time of day that you drive – and your driving methods – can have a big impact on your driving record. For example, accidents are much more likely at night and in rush hour, for obvious reasons. If your insurer can track your time on the road, it can therefore adjust your premiums to more accurately reflect the risk of a claim. Many insurers cover a certain number of miles and then award bonus miles to careful drivers.

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