November 24th, 2015 | Published in business
With the festive season fast approaching, road safety is at the top of most drivers’ concerns. This is not surprising as this time of year accounts for the most road accidents across the country. This is not to say that drivers across the country are just taking liberties with road regulations but that there are a few bad apples compromising everyone else on the road. With that said the advent of technologies such as telematics we can take back the power and not have to be accountable for other people’s mistakes, giving a lot of drivers peace of mind.
Telematics becomes especially important with regards to insurance, because in most cases your premiums are determined by generalised demographic probability. This means, for instance, if you are a male between the ages 18-35 you pay more just because statistically you are more likely to get into an accident. This is not ideal if you feel you are an excellent driver. It’s not all doom and gloom though, as telematics now allows insurance companies to provide tailored coverage, meaning your premiums are decided on your own personal driving style.
When you hear about this, you may think ‘yes, finally, I can now actually pay as I drive and not be subjected to inflated premiums based on stats I feel I don’t fit into’. Now what is this telematics thing? A recent article by Hippo titled “Insurance Telematics and Tailored Coverage” elaborates on what telematics is and how it works; I have put together some of the highlights from that article.
What is Telematics?
“A branch of information technology dealing with long distance transmission of computerized information”
HOW TELEMATICS WORKS
- A transmitter tracks driver behaviour including acceleration, rev count, braking and cornering while synced to a GPS system.
- This information is relayed to a data centre.
- The data is analysed at these data centres and reports your driving habits to the insurance provider.
- The insurance provider analyses the reports and assesses your premium.
- After this assessment good driving habits are rewarded with lower premiums saving you money.
This service not only applies to individuals but is available to logistics companies alike. This means companies can better manage their fleets, providing better security.
There might be security concerns about privacy and the abuse of personal information, but fret not—this won’t be a problem as all personal information will be protected by the Protection of Personal Information Act, so you can rest easy knowing no one will be maxing out your bank account. If you find paying less for your premiums intriguing as I do, visit Hippo for the full article.