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How telematics is changing the car insurance industry

Technology is everywhere. We carry computers in our pockets, we have voice recognition smart speakers in our homes, and we don't even have to consult a map when we are driving. Now driving and insurance have joined the technical revolution. Clever gadgets can be installed in our vehicles to track our driving. Let's take a look at what this technology is and how it is changing the car insurance industry.

What is usage based insurance?

It's time to renew your car insurance, and with so many companies to choose from, all with differing quotes, many of us turn to price comparison websites for the best deal. What it there was a way to get a deal that is personalised to you and customised to how you drive? Usage-based insurance works via a tracking device installed in your vehicle that records and stores masses of data, which is then relayed to your insurance company.

This data consists of a variety of driving markers, including how fast you drive, how long you drive, and when, where, and how often you brake hard. The motor trade insurance companies then use this information to read their customers' behavior behind the wheel and plot their insurance premiums accordingly. The
use of this technology is steadily on the rise.

How is this changing the motor insurance industry?

The biggest and most influential change being seen right now is the alleviation of risk to the insurer. If they know that a driver is likely to claim, they can adjust the premiums accordingly. Customers who drive safely are rewarded with lower insurance costs. In the long term, usage-based insurance should improve road safety and lead to lower premiums.
Quotemetoday and other companies can help you determine if your premiums could be lowered by engaging with this technology. 

Insurance companies can intervene with unsafe drivers and coach them in better and safer driving habits. The trackers also help with insurance disputes, eliminating one of the major headaches of insurance companies overall.

In short, for both drivers and insurers, a clearer picture of what happens out there on the roads is shifting the industry into one of a more personalised service, with more reasonable insurance premiums and both parties having correct and concise information.
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