How does telematics-based car insurance work?

None of us would pass up a chance to save a buck—

at the gas pump, in the grocery store and on our electricity bill. But your car insurance bill? Chances are, you probably think that price is set in stone. Well, with telematics-based car insurance, that’s not always true. 

Maybe you've heard it called black box, behavior-based or pay-as-you-drive, but those are all forms of telematics-based car insurance. What started as the high-tech solution for fleet truck drivers is now making a splash for folks looking for ways to save and customize their auto insurance policy. 

So, what exactly is telematics-based car insurance? We know a thing or two on this subject, so let’s talk telematics and address its relationship to car insurance and how it can work to help drivers save money. 

What is telematics-based insurance?

Telematics-powered insurance uses the smart technology in your phone or other device to measure your driving habits and tendencies to help shape your car insurance rate.  

How does telematics car insurance work?

The phrase "telematics technology" may trigger your robot-takeover-type apocalypse nightmares, but when you take a closer look it's pretty simple.

Start by thinking of telematics technology you might already be using, like your favorite fitness tracker or watch. The technology found in those devices can measure the number of steps you take, the amount of hours you slept, even how many calories you burn in a workout, etc., to help you reach your goals. 

When it comes to car insurance, telematics works pretty similar. It utilizes technology in your phone to measure things like your driving speed, miles driven, when you drive and if you’re distraction-free; all factors that can impact your car insurance premium. 

Good driving noticed and rewarded

If you’re a focused and safe driver, telematics-based car insurance policies can be a gift. Traditional car insurance often leaves little to no chances to save on your premium, leaving you stuck with a rate that you have no control over.

We all like being recognized for the good stuff we do, big and small. Telematics-based insurance has opened the door for car insurers to acknowledge good driving through savings on your bill or premium.

As the saying goes, when it comes to telematics-based car insurance, “don’t knock it until you’ve tried it.”

About HiRoad auto insurance

If you’re looking for a telematics-based car insurance company to test drive, look no further than HiRoad. We offer car insurance that has you in mind. We utilize the telematics tech found within your phone to recognize your behaviors behind the wheel and reward you for good driving with monthly savings on your insurance bill. 

Staying distraction-free while driving is crucial and unlike other telematics-based insurance companies, we recognize your commitment to leave your phone where it belongs while driving: out of your hands.

For the drivers who are making the safe, focused and not-too-fast decisions from behind the wheel, consider HiRoad and let’s get good going. 

The information in this article was obtained from various sources not associated with HiRoad®. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. HiRoad is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. HiRoad makes no guarantees of results from use of this information.