Car Insurance Tips 2020 – How Telematics Will Help Drivers Save Money On Their Car Insurance

LOS ANGELES - Jan. 20, 2020 - PRLog -- Lowcostcarinsurance.us has launched a new blog post that explains how telematics devices can help drivers pay lower car insurance rates.

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One of the most popular methods used by drivers to save money on car insurance is to install telematics devices inside their vehicles. Although some drivers might be concerned that they are sharing too much personal information to their insurers, the savings that can be done with a telematics device can be quite large.

Drivers who want to install telematics devices in their vehicles should consider the following:

·         Many insurance companies offer discounts for installing telematics devices. Telematics devices are used to track a driver's driving habits and will allow the insurer to measure the risk factor in order to determine the driver's insurance premiums. Drivers who have a low measured risk factor can obtain discounts as large as 40% or even 50%. For example, drivers who are driving fewer miles than average are more likely to have a lower risk factor than other drivers.

·         How telematics work. Today, most insurance companies are using an app or a dongle attached to the customer's smartphone. The app will use the smartphone's tracking system and other sensors to determine the driving habits of a driver. Using the gathered data, the smartphone will create a customized driver profile. This profile can show that a driver has a low-risk factor and is eligible for lower car insurance rates.

·         Drawbacks. Data privacy is the main drawback. Many drivers are not comfortable with the thought that their insurers are gathering personal data about them such as where they go, how often they go there, and how long they spend in a place. The insurance companies will gather quite a lot of personal information about the drivers who are using telematics devices. All of this data can be sold to third parties or it can be used in different ways by the insurers. Also, comparing quotes is more difficult. Telematics devices give customized quotes. Switching from a $150 a month plan to a $135 per month plan from another insurer is easy, but switching from a $120 per month customized plan to an unknown customized plan from another insurer is quite hard.


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