It seems inevitable that telematics are coming, and they are going to transform the face of car insurance in Calgary. A telematics-based vehicle insurance system relies on computer-collected data, which is then relayed to the driver’s insurance provider. Rates and premiums are calculated based on the collected data, which will include frequency of vehicle use and driving habits.
Car Insurance Calgary: The Basics of Telematics
Telematics relies on specially designed computers that continually capture data while vehicles are in use. It is already in widespread use in many countries around the world, particularly in Europe. In the United Kingdom, telematics devices collect vehicle data about 10 times per second. That information is then run through complex algorithms to make determinations about insurance-related variables.
Over time, the telematics system builds a profile of each driver who uses the vehicle. This profile automatically updates, taking into account the driver’s overall habits as displayed over an extended period of time.
In-car telematics computers can be used to collect the following types of data:
- Frequency and duration of vehicle use
- Average distance travelled per trip
- Average speed (relative to speed limits)
- Cornering speed
- Acceleration rates
- Braking intensity
Basically, telematics can be used to reward safe, responsible drivers and alert insurance companies to risky driving practices. The safer you drive, the lower your rates; the more risks you take, the higher your auto insurance premiums will be.
Telematics can also be used to provide parents with insights into their children’s driving habits. If your child is a teen or young adult who may be determined high-risk and who makes occasional use of your vehicle, telematics can track their driving habits. This allows you – and your insurance company – to make more informed decisions about your car use policies.
Car Insurance Calgary: How Will Telematics Work?
In the short term, telematics programs will likely be voluntary. In other words, consumers in Alberta and Calgary will still have the option to purchase traditional, premium-based vehicle insurance packages. However, those who elect to install telematics devices will qualify for a broad range of specialized insurance packages, which will then be carried by insurance companies looking to diversify their product offerings.
The rise of telematics is expected to trigger an increase in the number of “niche” products available on the insurance market. For example, insurers may begin to offer usage-based vehicle insurance policies, and the technology may eventually support “pay as you drive” insurance plans.
Right now, it seems telematics will be primarily used to collect information on the habits of young drivers, but these in-car computers could eventually become standard equipment. They have game-changing potential in terms of the future of Alberta’s vehicle insurance industry. For further information on how telematics could support a “voluntary discount” model, read this article published on the Canadian Underwriter insurance website.
Most industry experts agree that it’s just a matter of time before telematics data becomes a standard feature of the vehicle insurance industry. Consumers will benefit from more choice and reduced premiums, as well as a system that rewards those who maintain safe and responsible driving habits.
Car Insurance Calgary: Lane’s Leads the Way
Lane’s Insurance is a leading Alberta-based brokerage, offering a complete range of home, auto, travel, business and specialized insurance policies and products. Over the years, we’ve built up a broad base of loyal customers. If you’d like to see what our clients have to say about our services, read our consumer reviews.
At Lane’s Insurance, we’re committed to helping our clients save money while providing them with value-added service and personalized advice. In addition to our comprehensive insurance products, we also carry insurance bundles that can save you a great deal of money. For example, our home and auto insurance bundle can save you as much as 20 per cent on your premiums.
Visit Lane’s Insurance online to get a fast, free, no-obligation quote for your car insurance in Calgary. If you have additional questions, or if you require personalized attention, please contact a Lane’s Insurance customer care representative.
