Traditional car insurance companies consider the behaviors of drivers to determine costs of insuring them. The difference is that telematics insurance bases the cost on the safety used in driving of the individual driver, whereas conventional type car insurance formulates cost according to how one fits into a demographic such as “young driver”, or “male driver”. It seems they are always looking into a new demographic group in which to manipulate car insurance rates because a consumer fits comfortably into that category.
For those drivers feeling unfairly charged by fitting into a particular category that is routinely billing higher car insurance rates, a look into telematics insurance could provide meaningful savings. The GPS based insurance negates prejudicial car insurance notions of the behaviors of especially young and male drivers. If a young driver has above average driving habits, such as driving within the posted speed, taking no sharp turns while, and other similar habits then they can save on their insurance premiums compared with paying rates typically charged to young drivers.
Telematics car insurance is growing in popularity. Consumers are going to benefit from this popularity. Car insurance companies are taking notice. They are offering telematics as a way to save money and help improve the skills of drivers. Many are joining the revolution and are bringing out their own version of telematics car insurance. It was announced recently that AA would be doing so as well. The added competition will only bring more attention to the inflated rates currently being charged.
Coverbox Insurance News 