Telematics is a technology-based system whereby insurance companies assess your auto insurance premiums based on your driving habits. The idea is to create a fairer system of auto insurance, by rewarding safe drivers with lower premiums – as well as providing a much more accurate way for insurers to assess risk.
You may know Telematics by other names such as Right Track (Safeco), Snapshot (Progressive), or IntelliDrive (Travelers). Drivers participating in the program download an app to their phone, or plug a device into their vehicle, which measures their speed, acceleration, braking, and night time driving, for a period of 90-365 days. At the end, safe drivers receive a discount from their auto premium, or a lower rate for their auto insurance renewal.
Some industry analysts predict that nearly all auto insurance policies will be primarily telematics-based within five years. It’s good news for driver safety, and also for premiums. Most carriers offer a 5% discount just for taking part in the program, with up to a further 20-30% premium reduction available on completion.
Give your agent at Memorial Insurance a call to see which Telematics program is available for your auto policy, and whether it would be a good fit for you.