There are many things that your car insurance company can do to lower your premium or raise it. One of the more recent is known as Telematics. When you enable it, this allows an insurer to monitor how well you drive and where you go. This leads to a question: Should You Let Your Insurance Company Monitor Your Driving?
To those thinking about letting their insurer know every time they leave the driveway people might wonder if this is something worth looking into. Here we’ll take a look at what Telematics offers. We’ll also discuss if it’s something you should consider using for yourself.
The biggest benefit to allowing your insurer to keep track of where you go and how often is that they will be able to calculate premiums. Sometimes, the calculations are better because they were based on actual driving habits rather than perceived ones.
Some insurers are charging higher premiums to people who live in high crime or lower-income areas. If you were a good driver and never committed an infraction, you might still be charged more than someone with multiple claims and tickets. Moreover, if drivers receive discounts for completing certain tasks, they can actually save money by having their insurer monitor their driving behavior.
Other insurers are not only charging higher premiums to people who live in high crime areas but charging higher premiums to those who don’t drive as well. In some cases, people are paying almost $300 more per year because they don’t have a perfect driving record. If you’re one of those people, then letting your insurer monitor your driving may be a good idea.
Benefits of Letting Your Insurance Company Monitor Your Driving
There are other benefits to having your insurance company monitor your driving behavior. We’ll dive into some of them.
Savings on Premiums
The biggest benefit to having your insurer monitor your driving behavior is that you can often get discounts on your premiums. For example, if you have a good driving record and don’t commit infractions, you may be able to get a discount. When insurers see drivers who never commit infractions and always drive safely, they often reward them with discounts on their premiums. This makes it easier for people who need good scores to get cheap car insurance.
If you’re someone who doesn’t drive as well as you should, then your insurer may offer a safe driver discount. This is usually a percentage off of your premium for agreeing to have your driving monitored. Usually, the safe driver discount is around 5% but it can vary depending on the company.
Savings on Premiums and Rewards
One benefit of having your insurer monitor your driving behavior is that you may be able to get rewards. For example, if you complete a safe driver course, you may get a discount on your premium. In some cases, insurers will also give you a small gift card or another reward for completing the course.
Some companies offer this type of program because they want to improve their safety ratings. When they see that more people are taking the courses, they know that they’re doing something right. It also helps them improve their standings with regulators.
When you let your insurer know every time you leave the driveway, they can check to see if you’re driving safely. If you don’t drive well or break certain rules, then they may offer suggestions to help you be a better driver. When all is said and done, it can give your insurer an early warning about whether or not you drive well.
Record of Good Driving Habits
One of the best things about allowing your auto insurance company to monitor your driving behavior is that it helps people build their record of good driving habits. This can be great for those who are trying to get discounts on their car insurance premiums in the future. It’s also good for showing potential insurers who might want to insure drivers in the future what kind of driver you are.
Insurance companies that keep track of where you go and how often aren’t just there to find out who is a good driver. They also do it to help drivers be safer on the road. The better your driving habits, the more likely you’ll receive discounts for being a responsible motorist.
Drawbacks of Letting Your Insurance Company Monitor Your Driving
The biggest drawback is not being able to see how it will affect your premiums until after you enroll in a program. Once you do join a program, there’s nothing you can do about it until much later.
Even if you think that having your insurer monitor how well you drive may save money, there’s no guarantee that this is actually going to be the case. Plus, many drivers who join programs like this will not receive any discounts at all and will pay the same price every month as they did before joining.
Final Thoughts – Should You Let Your Insurance Company Monitor Your Driving?
The best way to find out whether or not something like this is right for you is to ask, “Should I let my insurance company monitor my driving.” If it sounds like a good idea, then give it a go. If it doesn’t sound that great then just move on and ask yourself what else might work better to get lower premiums.
If you have a perfect driving record and never break traffic laws, then allowing tracking may not lead to any additional benefits. However, if you don’t always drive safely or commit infractions, then this can be a good choice. You can have the chance to get discounts on your premiums.
When it comes down to it, the choice will vary from person to person. If you think that this would help you save money or improve your driving record, then give it a shot and see what happens. On the other hand, if it seems like something that isn’t worth doing then just ask your insurer if they have telematics technology available anyhow since some companies offer discounts for both good drivers and those who agree to have their driving monitored.
To learn more about auto insurance, check us out at Lopez Auto Insurance. We have a broad range of insurance products to cater to your lifestyle and needs. Get a free insurance quote. Give us a call.