Telematics, or what we call usage-based insurance (UBI), uses your driving habits and a score to determine the amount you'll pay for car insurance.
- A smartphone app is used, or a small leave-in device is simply plugged into your car, to collect various driving data, such as time of day, number of miles driven, speed, acceleration and braking.
- The key is for you to understand your habits, drive safer and potentially receive a better rate on your insurance premium. That's right, you may get a BIG discount for safer driving!
Telematics has a positive impact on driving behavior.
- Telematics insurane programs lowered the incidence of auto crashses involving young drivers by 20%.1
- Speed was reported as one of the top driving behavior in fatal crashes in 2017.2
- More than 56% of drivers reported making changes to driving habits after having a telematics device in their cars.3
2.National Safety Council