Telematic devices are gaining in popularity with auto insurers. A telematic device is a tracker of sorts that provides a wealth of information about your driving habits to your auto insurance company. The telematic device can provide your auto insurance company with the number of miles you drive per day, what routes you typically drive, the speed at which you are driving on those routes, and how quickly or suddenly you come to stops.
The auto insurance company can then personalize your premiums based on your risk factor. In many cases, your insurance will be cheaper if you use one of these devices. If you are thinking about using one of these devices, there are a few myths related to these devices that you should know about. Here are a few myths related to telematic-based auto insurance.
Your Insurer Can Require You to Use a Telematic Device
One of the myths related to telematic-based auto insurance is that your auto insurer can require you to install a telematic device in your car. At this time, you always have the option to not use the telematic device. An insurer can offer a discount or other incentive to use the device, but they are not allowed to force you to use the device or threaten to cancel your policy if you decide not to.
Your Rates Cannot Increase If You Use a Telematic Device
Another myth related to telematic-based auto insurance is that your rates will not increase if you use a telematic device. Most people believe that their rates can only decrease by using this type of device. However, if the telematic device shows you drive a high number of miles on unsafe roadways or you drive at a high rate of speed, the insurance company can use this data to increase your rates. While most people's rates decrease by using a telematic device, there is a chance they can increase as well.
You Can Stop Using the Telematic Device At Any Time
The last myth related to telematic-based auto insurance is that you can stop using the device at any time. In order to get any discounts or incentives, you are typically required to continue to use the device all the time. If you unplug it or stop using it, your rates can increase of you can lose the discounts or incentives you may qualify for.
Telematic-based auto insurance is gaining in popularity as it allows auto insurance companies to price policies based on individual driving habits. However, since the technology is new, there are many myths associated with telematic-based auto insurance. Take the time to really research telematic devices and the myths surrounding them to determine if they are beneficial to you if you are looking to save money on an auto insurance policy.
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