Blog

Telematics technology continues to gain speed in the automotive industry. It encourages drivers to be more mindful when getting behind the wheel, keeps our roads safer, alerts drivers to potential hazards, and helps insurance companies establish more accurate premiums.

But what exactly is telematics and why is it beneficial for drivers?

What is telematics? 

In a broad sense, telematics is the joining of two sciences – telecommunications, a branch of technology that includes the transmission of information using cables, phone lines, etc., and informatics, the science of processing data for storage and retrieval. Telematics is the technology of sending, receiving, and storing information relating to remote objects, like vehicles, via telecommunication devices.

In the simplest of terms, telematics is a black box that collects and transmits data on vehicle use, maintenance requirements and automotive servicing.

How does telematics work?

Telematics works by monitoring three aspects of your driving behaviours:

• Acceleration: trends in increasing speed and duration
• Braking: Frequent or sudden braking throughout your drive
• The time of day: Certain hours of the day are considered more high-risk

The telematics app then compares these three components against your total driving distance to generate a real-time analysis of your road habits. The concept is actually quite simple: the better you drive, the more you save!

In fact, drivers who sign up for the program will receive an automatic discount of 10 percent. And if you practice safe driving by keeping a proper following distance, maintaining reasonable speed, and avoiding travel between 12:00 a.m. and 4:00 a.m. you can save up to 30 percent!

Once you sign up, you will be instructed to download the telematics app, which will compare your braking, acceleration and the time of day against your total driving distance to generate a real-time analysis of your road habits.

Using this app allows us to paint a clear picture of your driving style and adjust your insurance premium accordingly.

Other benefits of telematics

According to the Victoria Transport Policy Institute in British Columbia, the widespread adoption of telematics offers benefits outside of just increasing road safety. As a result of people driving less, telematics will be able to reduce congestion, traffic accidents, pollution, energy use, as well as road and parking costs.

Who benefits from telematics?

 Any driver who wishes to take control of their insurance costs can benefit from telematics insurance. However, it is especially advantageous for inexperienced drivers, less frequent drivers with low annual mileage, and young drivers as they are categorized as high-risk and typically face high premiums.

Get rewarded for your safe driving habits today 

At Acumen, we’re all about encouraging safe driving. So, we’d love nothing more than to reward safe drivers with lower insurance premiums. Contact us today to find out more about how we can help you save up to 30 percent on your car insurance with telematics.