Telematics allows good drivers to save on auto insurance premiums, and diligent and careful Calgary motorists could save more if automotive telematics become available in the province.
What is Telematics?
According to Canadian Underwriter, automotive telematics refers to technology that utilizes hardware and software to keep track of how you use your vehicle, the speed you are driving against posted speed limits, how many left or right turns you have made, the number of kilometres you drive, the day and time of the day you drive etc.. Already available in Quebec and Ontario, thus far participation in such a program is voluntary, and you must be willing to share this information with your insurance broker, insurance company and the company administering the program.
Usage-based programs analyze your car’s computer data. And nearly every car built after 80s collects data all the time.
With your permission, telematics technology will allow your insurance provider to access information about your vehicle usage and driving habits through your car’s computer.
Your insurance provider may then be able to offer new services based on your usage, driving habits and preferences.
Telematics is a Popular Idea
Most Albertans are not yet familiar with telematics and drive-as-you-pay insurance, however according to Insurance-Canada, six out of 10 Canadians surveyed say they’re willing to join such a program if it provides a way to pay less for their coverage.
Two-thirds of those surveyed said it would take over $100 a year in savings to get them to enroll in a telematics program, and 61% believed they would have the chance to pay less for coverage.
By aligning the premiums you pay with the amount and manner you use your vehicle, these programs provide an opportunity for savings, especially for good drivers.
When Will Telematics Become Available?
When it comes to telematics as a voluntary discount or drive-as-you-pay insurance, the programs are still under discussion by governing bodies such as Alberta’s Automobile Insurance Rate Board, which consists of Albertans selected to represent the interests of motorists in the province.
Bow Valley Insurance: Auto Insurance Calgary
Bow Valley Insurance encourages everyone to practice good driving habits to save on their premiums.