Should You Consider Telematics or Usage-Based Insurance?

Should You Consider Telematics or Usage-Based Insurance?

February 09, 2022
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Should You Consider Telematics or Usage-Based Insurance?

Traditional Automobile Insurance costs are based on factors relating to your vehicle and driver profile, neither of which have to do with your day to day driving habits.  However, telematics technology is a method used by some insurance carriers to collect day to day information about your driving habits such as how you drive, when you drive and where you drive.  The data collected is used to offer personalized driving feedback, safe driving rewards and potential cost savings on your Automobile Insurance. 

While many insurance companies now offer a telematics program, no two are the same.  Carriers typically track a combination of the following:

  • Mileage
  • Time of day
  • Braking
  • Acceleration
  • Speeding
  • Distracted driving or phone usage
  • Cornering