Learn why auto telematics involves more than “plugging in” for personal lines auto insureds.

Read about the use of auto telematics in rating personal lines auto insurance.

We live in the Information Age. Round-the-clock communication is the new “plugged in”. Devices are connected and share data in real time. Auto telematics is a means of plugging in vehicles to gather and transmit data about the vehicle. Additionally, auto telematics can be used to monitor driving habits. Today, a handful of personal lines auto insurance companies are offering auto telematics as an option to insureds and prospective insureds.

A few key points that drivers should realize before plugging in to auto telematics with a personal lines auto insurance company:

• Currently, the few personal auto insurance companies that offer auto telematics do so at the personal auto driver’s option. *Except as noted below, the driver(s) on your personal auto insurance policy choose whether or not they will “plug in” to the app that records and transmits the way your vehicle(s) are operated for 90 days.

• Your driving is being monitored. The purpose of “plugging in” is to allow your driving to be viewed and evaluated. The main focus is braking, acceleration, night-time driving, and distance traveled.

• The media used to capture driver habits by personal auto insurance companies is either through an application on the user(s)’ cell phone or through a data port connection under the dashboard. *Driver(s) do not have a choice as to which medium is used, i.e. they must submit to whatever medium is required by a particular personal auto insurance company.

• The information collected, good and bad, may have a significant impact on your personal auto insurance premium. The average savings for good driver personal auto insureds is 10% to 15%. Some discounts may be as much as 25%. The flip side is that poor driving habits likely will result in a surcharge.

The personal lines auto insurance market is very competitive, particularly in Ohio. For obvious reasons, safe drivers with clean driving records have always been the most desirable insureds. Other key factors which affect personal auto insurance rates are the driver’s insurance score, age, zip code, type and number of vehicles. The Information Age and technological applications will continue to evolve. Those personal auto insurance companies that offer auto telematics as an option are vested in its effectiveness in assessing driver risk. Even so, consequential societal factors, notably privacy concerns, will likely be a driving force with respect to the extent to which the personal lines auto insurance industry fully plugs into auto telematics.

Richey-Barrett Insurance is your Trusted Choice Independent Insurance Agent for quality, affordable personal lines auto insurance. We represent several personal lines auto insurance companies, including three that offer the option of auto telematics.