Insurance Telematics System: Know How It Can Help You
From many years telematics is used in route control and in remote asset management, now it is also used by the insurance companies. Telematics helps the insurance companies in reducing the premium rates for the customers. The insurer does this by fitting a telematics device in the vehicle of the customer, this device is generally known as ‘black-box’.
This device sends the signals to the insurer, with the help of that information the insurer decides the driving ability of the customer. Good drivers will have the lower risk, so the insurer offers them a discount on the usual premium. Or the insurer may charge more premium if the customer is a reckless driver.
The telematics device/black box is very small is size, like a smartphone. And it is installed by the insurer to the customer’s car, usually beneath the bonnet or dashboard. The motion sensor and GPS record the information about the vehicle such as how long it’s been in operation, vehicle location, what was the speed even how many times the break has been applied are recorded and transmitted. This information is then processed and a profile of the driver is created. If the profile shows that the driver is smooth on the controls then he/she is considered as a good driver and can be put in the category of discounted premium.
Not only that, if your vehicle is equipped with a black box, it can also act as a tracker if your vehicle gets stolen. A specialized gps vehicle tracking service is a lot more expensive to use, so this black box given by insurer can also save you money in this function. A single telematics system can help in many ways it can cut the insurance premium and it can also find your stolen vehicle.