How does telematics work anyway?

You might not have realized it, but telematics technology is becoming ubiquitous. And the road never looked so inviting now that it’s working for drivers. No big surprise, since the technology was developed specifically with users in mind. We’ll explain exactly how it works in five easy points. So buckle up and enjoy the ride!

1. What is it?

Telematics is a catchy combo of the words “telecommunications” and “informatics.” It means the ability to collect, process, and communicate information from a remote object. Want some examples? One is your electric meter, which can now be read remotely, or when you go online to control your home heating or alarm systems.

Telematics has even better applications in auto insurance! We now have the ability to read the position and movement of drivers’ smartphones and give them a personalized premium based on how they drive. Cool, huh?!

2. How does it work?

It’s so simple! GPS data from a driver’s smartphone is sent via satellite and saved on secure servers. The data is then broken down into user-friendly bits of information and diagrams, which are sent to the driver via Internet with trip details and maps, scores, discounts, and more. That way the driver gets a detailed summary of every trip.

3. What does it calculate?

Our telematics program allows us to collect and analyze information on various aspects of driving, including speed, acceleration, and braking. It also records the route a vehicle took, the distance travelled, and the date and time of the trip. Pretty much everything we need to send the driver a full report!

4. Who’s it for?

Everyone. That’s right—in auto insurance, telematics is available to all drivers. No exceptions! But it’s especially designed for drivers who want to improve their driving and save money at every turn.

5. What are the advantages?

As we said, telematics was developed with you in mind—and it’s no exception in auto insurance.

Save on your insurance:Speed limit observance, gradual acceleration, soft braking, etc. Good driving habits can mean big discounts on your car insurance premium. The principle is simple: The better you drive, the more you save


You get better behind the wheel:
Since you get trip reports, it’s easy to see how and where your driving was less than ideal. All the info you need to perfect your technique and be that much more diligent next time!


Tell your friends and family:You can encourage your family members to improve their own driving (and get the associated discounts) through the telematics program. Or share your driving scores with your friends and challenge them to give telematics a try for themselves. You’ll be making the roads that much safer!