Driving is a great way to get around, lower the cost of movement, and open up access to places that are not convenient travelling only by train or bus. So whether you travel for your work, pick up the kids from school, or drive simply for fun, driving is very important for many people. However, this convenience also comes with a price that many of us complain about when the yearly renewal comes. That’s right; we’re talking about your car insurance premium.
Over the years, many insurance companies have adopted a discount system called an insurance telematics discount. While you might have heard other names or terms for this discount, most of them are really the same thing. In "What is usage-based insurance?", we define these different names.
These tools and systems can help you save on your car insurance premium via a mobile application or a device connected to your vehicle. Using GPS and other sensors embedded in these devices, insurance companies can understand how you drive and how much you drive to determine a discount on your car insurance premium. If you are a safe driver or if you drive less than an average driver, then the chances of you getting a discount is pretty high.
So, what are these 6 driving factors that insurance companies use when determining a telematics discount for your car insurance premium? They are:
- Distracted Driving
Now, let’s examine each of these driving factors, explain what they measure, and how they impact your overall car insurance discount for your next renewal.
The acceleration score measures how quickly you speed up. Whether you are about to accelerate after a red light or merging onto a highway, the acceleration score plays acritical role in your safety. Moreover, frequent and repeated accelerations might cause you to be considered an aggressive driver, reducing your overall score and your potential discount. That’s why for a better acceleration score, we suggest you accelerate slowly and steadily if you want to get a higher discount from your insurance company.
Have you ever heard that good drivers are the ones who brake less often? In fact, the braking score is a great way to understand a driver’s anticipation of the road’s condition, meaning that they are always physically and mentally alert. We suggest every driver “read” traffic conditions at all times and engage with brakes when it is necessary, but smoothly and infrequently.
Safe corning can be the nightmare of every novice driver unless they know how to tackle this physics problem while taking a turn at speed. As a general rule, you should always reduce your speed before approaching the turn, even if you are familiar with the road. Then, if you picture the steering wheel as a clock, place your hands at nine o’clock and three o’clock, turning it slowly in the direction while gradually increasing your speed. Turning corners like this make it possible to maintain a high cornering score. This will also help you get a more significant discount on your car insurance premium.
The speeding score measures how well you follow the posted speed limits on different road types. However, the general rule is to drive at a speed that will let you stop safely, no matter where you drive. Where there are no posted speed limits, the maximum speed limit is 50 km/h in cities, towns and villages, and 80 km/h elsewhere, unless otherwise stated by your local law enforcement unit. Therefore, obeying the speed limit, even if there is no car around you on a 5-lane highway, will help you get a perfect speeding score and reduce your car insurance premium.
While distracted driving is a general term for times when a driver is not paying attention to the road, most insurance companies define it as how frequently drivers use their mobile phones while driving. This makes sense because almost half of the road accidents are caused by inattentive drivers, especially those who were texting or talking on the phone while driving. That’s why we highly recommend you do not use your phone while driving. Not just because it’s illegal, but for your safety and to lower your insurance premium.
Distance is the most important driving factor while determining your usage-based insurance premium. Statistically speaking, the more you drive, the more you’re prone to accident risk, and this might increase your premium too. Moreover, insurers also consider if and how much of your driving is for personal or business purposes.
Overall, most car insurance companies use these 6 driving factors to determine the telematics discount on your car insurance premium. But don’t worry. If you haven’t joined any of these programs before, you can always download the Allegory App for free to see how well your driving is and compare it with your friends and family!