One of the best insurance policies to consider for your car is telematics insurance. That being said, there’s likely a few questions you might have regarding how the policy works, and more specifically, how it manages to analyze your driving accurately.

That’s no problem, since we’ve put together this article to help you understand exactly how telematics insurance works.

Read on to find out more.

What is telematics insurance?

Telematics insurance is a unique type of policy for your car, as it involves the use of advanced technology to analyze different aspects of your driving.

With the technology gathering data on your driving behavior, it can then be shown to your insurance provider, given them an accurate picture of how you drive.

Your insurer can then adjust your insurance premiums based on what the data from your telematics technology reveals, and how it presents your likelihood of being involved in an accident.

How does telematics insurance analyze your driving?

For telematics to accurately gather data on your driving, you must first have the technology installed in your car.

One of the most common ways this is done is through a special chip being installed in your car windshield. However, expert technology can now allow for telematics to be installed as an application on your phone.

In both forms of technology, your telematics uses global positioning system (GPS) and motion sensors as the main sources of analyzing your driving. When it comes to your phone, you just need to ensure your location services are switched on, as the software will use your phone’s motion sensors automatically.

This will allow for the most accurate readings on your driving, and analyze even the slightest movements from your vehicle.

Once the data is gathered, it’s then transmitted to your insurer through telecommunications (cables, cellular networks, phone lines) and informatics (computer systems used to organize data).

Your insurer will then be able to asses how safely you drive, and use this to adjust your insurance premiums. The safer you drive, the less likely you are to have an accident and consequently make an insurance claim.

In short – the safer you drive, the lower your insurance premiums are.

What data is analyzed by your telematics insurance technology?

The type of data that’s analyzed by your telematics technology spans across a variety of different things. Every element of this data is collected with the highest level of accuracy, to reflect your driving fairly and precisely to your insurer.

Some of the data analyzed includes:

• Maneuvering safely – This will include how well you execute a range of maneuvers on the road. For example, are you turning corners too fast, or reversing into obstacles when you park?
• Stopping in good time – Telematics will also measure how safely you stop at stop signs and other appropriate places. Do you slow down gradually, or need to brake harshly at the last minute?
• Staying within speed limits – The data will show whether you’re driving within the legal speed limits for every road you’re on. For example, are you reaching unsafe speeds on the highway?
• Driving at the safest times – It also analyzes the times of day you’re driving, as later hours of the day are regarded as less safe to drive. Ask yourself – can I avoid driving in the dark?
• Not using your devices – Your driving will also be analyzed against when you’re using your mobile devices, i.e., are you scrolling through texts whilst on the road?

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Now you know exactly how telematics analyzes your driving, you can see why it’s such as great option for so many drivers looking for great premium prices, which can be catered and adjusted to you individually. Is telematics your next policy?