Telemetry in auto insurance is a reality

Telemetry in car insurance is already a reality and can lower the premium value.

Anyone who takes out car insurance needs to fill out a risk assessment form to determine the value of the premium. However, this value does not always end up being calculated accurately and more prudent drivers behind the wheel may pay a little more than they should.

But, as technology is a great ally in the business world, telemetry in auto insurance is coming to revolutionize how the value of insurance is established.

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What is telemetry?

Telemetry is a technology that allows wireless communication of data sent from the vehicle to a central location. With it it will be possible to obtain information about the use of the vehicle such as: speed, braking, among others.

This information is received by a center that uses Big data and allows the data to be analyzed. Although the technology is not that new and is used for other purposes, in the world of car insurance it is still new.

For example, transport companies already use it to know how drivers are driving and to be able to better guide drivers. However, telemetry should not be confused with the tracking system. Telemetry collects data for analysis and the tracker reports the vehicle's location.

Does telemetry in auto insurance influence costs?

The biggest question for drivers is how telemetry can influence car insurance. Companies can use policyholders' driving data to identify the real risks they pose behind the wheel.

Through an application on their smartphone or equipment in the vehicle, they will receive information that will be evaluated by the center. Drivers who frequently exceed speed limits, brake suddenly or commit reckless driving will be penalized with a higher premium. As for good drivers, those with lower risks will benefit, managing to reduce the value of the insurance.

The novelty arrived in Brazil in 2017, however, in other countries “pay as you drive” is already quite common.

Insurance companies that have adopted telemetry

Porto Seguro is one of the insurance companies that has already adopted telemetry. Initially it was only available to those who had young car insurance and monitored through equipment installed in cars. However, the intention is for it to be expanded to other types of insurance, including allowing monitoring to be carried out through its application.

Liberty is another insurer that has also adopted telemetry to help determine insurance pricing. The tendency is that other insurance companies will soon end up adopting telemetry and those who benefit are drivers with good driving behavior.

To find out if this option is already available with the insurance company that intends to protect your vehicle, get an insurance quote.

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