The Pros And Cons Of Using Telematics To Determine Your Auto Insurance Rate

Many auto insurance companies are offering possible insurance discounts to those who use an insurance telematic device in their car. This device connects to your car and tells the insurance company a great deal of information about your driving habits, including how many miles per day, week and month you drive, where you drive, what speed you drive and even if you brake suddenly or unexpectedly. All of this information can then be compiled and the insurance company can use it to determine if you are a safe driver. If they determine you are, you may get a discount. If you are considering doing this, you may be wondering if you should. Here are a few couple of the pros and cons of using telematics to determine your auto insurance rate. 

The Cons of Using Telematics to Determine Your Auto Insurance Rate

  • You Give Up Your Privacy

One of the biggest downsides to telematic devices is that you give up a lot of information and lose some of your privacy. Your auto insurer can use telematic device to track where you go, where you have been, whose house you have been at, where you work, what parking lots you've parked in and what streets you travel down at what time. There are major privacy concerns with these devices, which is why some people are hesitant to use them. 

  • Your Auto Insurance Rates Can Increase

The other disadvantage to these devices is that your auto insurance rates can increase. Most people install them hoping to get lower insurance rates. But if the device shows you speed, don't fully stop at stop lights or make a lot of sudden stops, your auto insurer may deem you an unsafe driver and raise your rates instead. 

The Pros of Using Telematics to Determine Your Auto Insurance Rate

  • You May Be Eligible for Lower Insurance Rates

The biggest advantage to telematic devices is that they can possibly help you get lower auto insurance rates. If you drive the speed limit and drive in a safe fashion, you may be eligible for discounts, which can make auto insurance more affordable. 

  • The Telematic Device Can Help in the Event of an Accident

The other benefit to these devices is that in addition to being useful for insurance companies, they can help in the event of an accident. If you are in an accident, it is often your word against another drivers. The telematic information can be pulled from your car to show what speed you were traveling at, if you stopped for a light or stop sign and exactly when you hit your brakes, which may help to prove you were not at fault for the accident. 

The use of telematics to determine your auto insurance rate is fairly new. As this technology evolves and becomes more wide spread, changes may be made that may affect these pros and cons. As such, if you decide that telematics may or may not be right for you at this time, you should always look into it again in a few years to find out if the pros and cons have changed.