Auto insurance premiums have been on the increase for several years
now, and most experts predict that the cost of insuring your car will
remain high. The increased cost of injury claims resulting from car
accidents is just one of the factors that have pushed premiums to new
levels. Increased fuel and maintenance costs have had a further impact
on drivers, and many now question whether owning and running a car is a
luxury they can’t afford. Young drivers have been hit particularly hard
by increased insurance costs.
Car insurance for young drivers is expensive because statistical data
used by insurance companies indicates that they are more likely to be
involved in accidents. Experts agree that driving experience
dramatically reduces the risk of collisions and accidents, and young
drivers simply haven’t had enough time on the road. Many insurers will
offer discounts to young drivers if they take advanced driving courses,
and this is one way to reduce premiums. New technology is now seen is
the real solution to providing cheap car insurance for young drivers.
Telematics car insurance policies offer personalised insurance cover
based on exactly when and how you drive. Insurance underwriters have
traditionally grouped people together and rated policies on the average
driver, but telematics technology makes it possible to assess the
driving habits of the individual. By having a device fitted to your car
which monitors and tracks your driving performance, you can prove to an
insurance company that you are a better than average risk.
Telematics car insurance is becoming increasingly popular, and
specialist policies are now appearing on insurance comparison websites.
Apps are now available allowing you to experiment with the technology
used by telematics insurance providers. Downloading one of these apps is
a good way to test your driving skills and assess whether a telematics
policy may be right for you. If you believe that you are a better than
average driver, it’s probably worth having telematics technology
installed. There are no guarantees of immediate insurance premium
savings, but the technology can guide you to be a safer driver and
ultimately to get the benefit of cheaper car insurance.
Data analysis proves that certain driving habits make you more at
risk of having an accident. Harsh accelerating and braking, and
cornering at high speeds are examples of the sort of behaviours likely
to lead to collisions and accidents. The time of day you drive and the
type of roads you use most often also influence the statistical chances
of you needing to make an insurance claim. Telematics technology can
track your driving habits and lead to cheaper premiums if you are a
better than average driver.
As well as helping you to become a safer driver and reducing your
insurance premiums, a telematics device can also help if you have an
accident. If the device senses that your car may have been in a
collision, it can automatically notify the insurance company. If the
insurance company believe you are in a remote location or may have been
injured, they can make contact with the emergency services and get help
out to you.
Some drivers are reluctant to have a telematics box fitted to their
vehicle as they believe this means they are being spied on. In reality
there’s very little the local company can do with the information
they are fed other than assess your driving habits and behaviours. The
police will not be notified if you break the speed limit, and there are
no cases where evidence from a telematics device has been used to
prosecute a driver. If you do drive at dangerous speeds regularly, you
are unlikely to see insurance premium savings.