In a world where data accumulation is king, auto insurers are keen for information on drivers and driving habits. Johnson and Rohan represents three of Massachusetts’ largest auto carriers (Safety Insurance, Travelers and Progressive) and each is offering discounts to insureds for using software that will monitor driving. To entice consumers, they offer potential discounts- anywhere from 5% and in some cases, up to 27% discounts to premiums. Typically they’ll track:
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- How fast you drive
- Braking patterns
- Acceleration rates
- Where you drive- city or suburban
- Miles driven per week
- Traffic patterns for commutes
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Insurers accumulate the data using mobile apps, diagnostic plug-in devices, Bluetooth beacons or vehicle options like OnStar. Insurance companies monitor the feedback and offer discounts to safer drivers. Usually there is a base discount offered at inception and after a 30 or 60 day trial, a discount is established.
Telematics are not for everyone. The better you drive, the more you can save. However, some programs can raise your insurance premium if the driver has poor driving habits. Each company has its own tools and programs.
The perfect candidate for larger discounts are drivers that drive slowly and safely, drive fewer miles and typically drive locally, and outside of high volume traffic patterns.
Give us a call if you’d like to know more about your telematic auto insurance discount options.