Tips For Saving On Your Auto Insurance With Real-Time Telemetry

Posted on: 10 January 2018

When it comes to saving money on auto insurance, most people are familiar with all of the discounts and coverage adjustments that they can take advantage of. However, those aren't the only ways to cut your auto insurance costs. In fact, if your insurance company offers a real-time telemetry system to track your driving habits, it could save you significantly over time. Here are some of the key things you should know about these devices and how they work.

How Does Real-Time Telemetry Work?

If your insurance company offers you a system like this, you'll be given a small device to plug into the computer port on your car. That device tracks how you drive while it's connected to the car. That information can then be accessed by your insurance company, including things like your average speeds, braking behavior, any erratic movements, and other information. Your insurance company can use that to see how you actually drive so that they can base your rates off your actual risk factors, not just general assumptions.

How Does Real-Time Telemetry Save Money?

Real-time telemetry isn't necessarily going to be a money saver for everyone. Since it's based on precisely how you drive, it will only save you money if you are a safe and responsible driver. If you frequently exceed speed limits, accelerate rapidly, or brake hard, your telemetry unit will show it. That will put you in a higher risk classification, thereby potentially costing you more money.

Do You Have To Use The Telemetry Results?

If the results of your telemetry scan don't end up saving you money on your auto insurance premiums, you should have the right to withdraw from the program. In addition, if you know that you're not the most conscientious driver, you may choose not to try the system at all. But, for those who drive responsibly and safe, this kind of real-time tracking can be a savings on the annual premiums if you choose to use it.

What Else Should You Consider?

If you're thinking about pursuing the real-time telemetry system with your auto insurance company, make sure you understand all of the details about the system. Ask how they will receive the information. Some companies need to physically receive the device back to download the information while others use a tracking device that's wireless and transmits data automatically.

You should also ask about how your information is handled and secured. Don't risk a data breach. Find out about the security measures and also about how the insurance company will use your data. The more you understand, the better prepared you can be to cut your auto insurance premiums with real-time tracking.


Little-known Insurance Tips

While I have had auto insurance ever since I bought my first car at 16 years old and home insurance ever since I bought my first home several years ago, I have to admit that over the years I knew very little about insurance. I tended to just look at the price of the coverage and sign the paperwork without really looking into the pros and cons of each policy. After my friend was in a car accident recently (thankfully, she is okay!) and she said she had to pay for some of the damage to the other vehicle out-of-pocket even though she had a minimum state coverage auto insurance policy, I decided to put a lot of careful research into insurance policies and what they really offer. I want to help others by sharing the information I have learned on a blog. I hope I can help you!