It is a connected world. Do you like to track and improve your driving behavior? Telematics is growing in popularity in Canada, and it has proved to be a must-have option for insurers to lure customers.
Telematics is an interdisciplinary field of telecommunications and informatics which transmits digital data back to the receiver. The vehicle may be a car or truck and can be efficiently tracked. Telematics devices track location, the status of a vehicle, and driving patterns.
At the receiving end, all these collected data are visually represented to draw conclusions on driving habits. Automated reports generated on the distance driven, speeding, and braking frequency.
Features of Telematics Software
Assistance
Roadside and emergency assistance is an essential feature of telematics made possible through an SOS button. It helps in case of immediate medical help needed after a crash or summons for help in case of a flat tire or car breakdown. You can be a good Samaritan by helping others in case of failure.
Diagnostics
Behaviors of the driver like running the engine while parked, speed limit crossing, and acceleration and braking frequencies are studied in detail. Reports on car health can be obtained on a monthly or weekly basis. This helps abundantly in preserving the health of the car and its parts. Thereby preventing unexpected breakdowns or failures.
Notification
The modem inside a telematics system is crash-resistant. Hence in case of a crash, help is sure to arrive. A notification is sent automatically after an accident to the call center. Data submitted by sensors can be used to analyze damage level due to collision, and also the extent of injury to the driver or passengers is assessed.
Benefits of Telematics
Insurance companies offer Usage-Based Insurance (UBI) plans. These plans are an excellent way to assess and reward customers.
Insurers provide discounts or reduced premiums if proved of having better driving behaviors. This brings a smile to the buyers’ faces and earns the trust of insurers.
It allows a reduction in lengthy paperwork and easy analysis via web-based reports. This avoids human misunderstandings and disputes. Insurers can provide customized policies based on driving habits and the ability of customers.
Achieving a reduction in the number of accidents and preventing reckless driving through speed limit notification means that they value the lives of others.
The Telematics Forecast
The number of insurers using telematics and offering UBI plans is expected to boom. According to a survey conducted by the Insurance Bureau of Canada (IBC), the majority of people opted for telematics-based insurers.
Passenger Vehicle Telematics Market is set to grow at 23.57% annually during the period 2018-2022.
Government regulations on vehicles will drive telematics growth globally. Private companies face stiff competition to come up with lucrative insurance plans.
Telematics Is Here to Stay
Nowadays, all drivers are GPS aware and place extreme importance on safety and protection. It is mandatory to get car insurance before driving. Shop around for the best quote before deciding.
It doesn’t stop there and can get innovative with UBI and telematics. With government regulations in place, drivers need to embrace telematics as a game-changer.
The strong growth predicted, and the people’s acceptance of telematics opens doors of prospective business.