Other than owning a drivers license, it is imperative to have a valid insurance policy. Both are to be carried in the vehicle as proof that one is able to drive, knows the rules of the road and is protected in case of an accident.
State laws require these two items to be with the person doing the driving; if found without them, drivers can be accused of having committed a crime. In the U.S., there are criminal penalties for those who are caught without a valid driver's license, auto insurance or both.
When it comes to needing an auto insurance policy, instead of having stored insurance paperwork in the car and finding an insurance provider that offers full coverage auto insurance options at a good rate, why should a driver not consider telematics car insurance?
The term, telematics, when referred to road vehicles, involves using an on-board computer (referred by some as the “black box”) to connect to the car's OnBoard Diagnostic (OBD-II) port to send driving data to an insurance provider.
Data such as the driver’s speed, time of day the vehicle is being driven, travel distance, time spent driving, patterns of driving, behavior, and place is all collected while the vehicle is being driven.
From an insurance provider’s point of view, the data reveals how well and how far the car has been driven; it will lead the provider determining whether or not this is a safe driver or not, or is reckless or involved in a car accident. If the latter happens, for example, the value of using vehicle telelematics is having it available, if requested, in the accident investigation process.
By using usage-based insurance (UBI) services, from a wireless carrier provider such as Sprint UBI services or from DriveFactor – which all use telematics to collect vehicle information – drivers are sure to save money on the cost of car insurance.
But that also depends on which telematics insurer one decides to use.
Vehicle telematics has significant benefits for the car insurance industry and for the drivers, young or old. It is ideal to have such an auto insurance coverage plan to pay as you drive (PAYD), pay how you drive (PHYD) or based on miles.
Telematics may not be for every driver, but it is an opportunity for some to be rewarded for safe driving behavior and have control over costs such as car insurance premiums.
Also, telematics may be beneficial for young drivers who are normally unable to afford auto insurance. As mentioned in Tiger Watch, the insurance price monitor published by Tiger.co.uk, those who just got their license and are ready to drive a car will likely have to pay high car insurance premiums because their age group is more likely to be involved in accidents.
However, if this is not the case and a young driver is able to avoid accidents, telematics car insurance may be a good alternative than a traditional insurance policy to help bring insurance prices down.
A lot of people have decided to use telematic insurance. The use of telematics for insuring car drivers has become widespread; major growth has come from the U.S. and Europe.
As Tiger.co.uk’s have discovered, shown in their latest sales update, “sales of telematics-based policies are growing as more insurance providers are bringing their black box products to the market.”
At the moment, both drivers and car manufacturer insurance companies are adopting telematic-based UBI technology and services. Drivers see the advantages in making auto insurance coverage more affordable than before, whereas companies see telematics as having reliable solutions for road safety.
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Edited by Braden Becker