Vehicle

Insurance Telematics and Tailored Coverage for the Festive Season

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As we approach the festive season, road safety is paramount; this period accounts for most road accidents in the country. This is a major issue in the country and there has been a concerted effort from various stakeholders to make roads safer. The latest effort comes in the form of a new technology called ‘telematics’, which serves as a self-regulation tool, helping motorists maintain safe driving practices. Telematics assists the process of information sharing with your insurance provider allowing you to save on your premiums, and it acts as a safety net in the event something bad happens on the road.

Hippo has recently published an article on the benefits of this new technology and how it helps drivers stay safer on the roads, and on telematics’ potential beneficiaries and implications for drivers. Arrive Alive’s insights were featured in the article. Here are some of the highlights:

HOW TELEMATICS WORKS

  • A transmitter tracks driver behaviour including acceleration, rev count, braking and cornering while synced to a GPS system.
  • This information is relayed to a data centre.
  • The data is analysed at these data centres and reports your driving habits to the insurance provider.
  • The insurance provider analyses the reports and assesses your premium.
  • After this assessment good driving habits are rewarded with lower premiums saving you money.

(As referenced in the original resource Insurance Telematics and Tailored Coverage)

WHAT IS TELEMATICS

A branch of information technology dealing with long distance transmission of computerized information

Through adoption of telematics, insurance providers are moving to a Pay as You Drive (PAYD) model, allowing you to get more for your buck and better protection in the event of an accident. Telematics allows visibility on your driving style through historical data. This not only applies to individuals but, for logistics companies, this will help with fleet management and help you get better security for your business.

There might be security concerns about privacy and the abuse of personal information. This won’t be a problem as all personal information will be protected by the Protection of Personal Information Act. On top of this, all information concerning you or your company will be treated as sensitive information and will be treated with the necessary sensitivity.

With telematics, insurers will have a realistic picture of your driving and can provide tailored cover which means better cover for you. For more information on telematics and tailored cover, visit http://www.hippo.co.za/blog/motor/insurance-telematics-and-tailored-coverage/ for the full article.

Also view:

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