How a Little Black Box Can Save You Money on Car Insurance
What Are Telematics?
Telematics is not a word that most people are familiar with, and, yet, it can affect your wallet. Basically, it is sending computer data over long distances. Why is this important? It is used in cars to report your driving data to insurance companies. It sounds like something only tech companies would be concerned with. In reality, it could help you save money on car insurance with a little black box.
Determining Auto Insurance Rates
Currently, insurance companies determine rates based on statistical data. For example, younger, elderly, and male drivers pay more because they have higher rates of tickets and accidents. Of course, this strategy is based on generalizations and, thus, is not very fair. It punishes or rewards individuals for the groups they belong to rather than for their personal value. Of course, there are rewards programs in place to incentivize good drivers, taking into account their personal driving record. But, what if your driving record and style were the only things the company considered? Hypothetically, if you are a man or someone in another high-risk driving category, you can save a lot of money.
Using the Little Black Box
So, how would this work? Insurance companies have devices that are called “black boxes”. These are placed into a car and used to collect data related to driving style. They record things such as speed, miles driven, and the time you are on the road. It will also monitor behavior on braking and the way you navigate corners. All of this information tells them what kind of driver you are and if you could make any improvement to be safer on the road.
Effect on Your Auto Insurance Rates
Due to the way in which the data is collected and assessed, policies based on a black box will have monthly insurance premiums. They will fluctuate based on your driving performance during the previous month. Of course, this is a risk. Once you have committed to this monitoring, you have to deal with the consequences. This can place a certain amount of pressure on you as a driver, making mistakes costly. Make sure to consider your driving record and confidence in your driving ability before securing black box insurance. If you feel comfortable with the process, it can be a very effective way to save money by being rewarded for safe driving.
Every home is different, even if they have the same design. Therefore, every insurance policy is created differently. Choosing a home insurance policy is extremely important in the home ownership…Read More
Every day we witness history. This week, Joe Biden made a historic choice for his running mate. According to CNN, Kamala Harris is only the third woman to ever be…Read More
Car Insurance is essential for anyone who drives. And the word “essential” has taken on a whole new meaning these days. Our daily lives have changed drastically amid coronavirus and…Read More
As of the beginning of May 2020, coronavirus is responsible for almost a quarter of a million deaths worldwide. The coronavirus pandemic has reminded us of all of what is…Read More
According to CNN, as of March 22, the number of deaths from coronavirus in the United States has risen to 377. As a result, governors in 5 states have issued…Read More
Kobe Bryant’s passing is a terrible tragedy. It’s easy to forget how fragile life is. Unfortunately, we can get caught up in the hustle and bustle. It is not uncommon…Read More