Telematics

The majority of drivers on the road are generally safe however there are always a few bad apples that spoil the bunch. This is why insurance companies have introduced methods of rewarding safe driving habits. One way they have done so is through telematics.

What are telematics? In terms of auto insurance, telematics devices collect data that allow the insurance company to customize your policy based on driving patterns and behaviour. This concept may seem scary however it is not by any means. The insurance companies do not monitor where you are going or what you’re doing while operating your vehicle. A telematics device measures three pieces of information:

  • The distance you drive
  • The time of day when you are on the road
  • How hard and fast you break or accelerate

By enrolling in a telematics program the insurance company will provide you with a small wireless device that can be quickly and easily installed in your car’s diagnostic port (typically under the steering wheel). As for how information is collected and relayed back to you, that depends on which insurance company is offering the program.

Intact Insurance for example requires an email address in order to send them a record of the data collected. By enrolling in their My Driving Discount, you are given a 10% discount on enrolment and up to 25% on renewal based on your driving habits.

Pembridge uses a program called MY_BRIDGE that offers a 5% discount and an additional 5% discount if you use their smartphone app which allows you to monitor your telematics information.

This means that good driving habits can save you additional premium on your car insurance. If this interests you please feel free to contact one of Pacific Insurance Broker Inc.’s knowledgeable Insurance Brokers today at (416)494-1268.