Almost every auto insurance carrier has an option to participate in a telematics program. But what exactly is it and is it worth it?

What is it?

Telematics is an App Based program that monitors your driving habits and will adjust your Auto Insurance Rates accordingly.

What does it Track?

Most Programs track the following metrics:

• Time of Day driving – They just want to see if you are out between 12 and 4 am on the weekends.
• Acceleration – How fast are you speeding off the line?
• Hard Braking – Are you waiting until the last minute to slam on your brakes or are you able to plan ahead and slow down easy?
• Cell Phone Usage – We all know by now that it is not safe to use your phone while driving.
• Speed – This one is rare but we have seen one carrier in particular that is now tracking if you drive above a certain speed. We will have to see if many other carriers begin doing this as well.

How long does the program last?

Many of the carriers we have reviewed have a time frame that you must participate in the program ranging from 90-120 days. However, we are seeing more and more carriers prefer for you to stay in the program for the duration of your policy period. If you start the program and decide it is not for you, you have 45 days to opt out of the program.

How much can I save?

Almost all the carriers provide an upfront discount of 5% just for participating in the program. That discount can increase up to 15-45% for a total of 20-50% discount on your premium.