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Telematics Insurance in Canada: What You Need to Know

 

Historically, insurance premiums have been based on aggregate data that assesses factors such as gender, age, postal code and driving history. Telematics, or usage-based car insurance, offers a more individualized approach to calculating premiums.

 

Here’s what you need to know about this increasingly popular form of auto insurance.

 

How does telematics insurance work?
When you sign up for a usage-based insurance plan, the insurer will track your driving habits and use this data to adjust your premium in the future. They’ll either give you a telematics device to install in your car’s diagnostic port or have you sign up for a smartphone app that monitors your driving. This technology typically tracks the following:

 

• The distance you drive
• The speed you drive at
• The time of day that you’re on the road
• The ease with which you accelerate, brake and turn

 

Telematics insurance rewards motorists who exhibit good driving habits as well as those who drive infrequently or only short distances.

 

Additionally, many telematics insurance policies let the driver access the data the insurer collects about his or her driving habits as well as their savings. Typically, this information can be accessed online. This data can help drivers see how they can adjust their driving habits to reduce their premium.

 

What impact has the COVID-19 pandemic had on telematics insurance?
Telematics is seeing a surge of popularity in the wake of the COVID-19 crisis. From a general perspective, many people are looking for ways to save on insurance during the economic downturn. Additionally, a large number of drivers have significantly decreased the amount of driving they do as a result of the lockdown. For some, this will be a temporary change, but others see themselves working from home more frequently or exclusively even after the threat of contagion has passed. As a result, they want their car insurance policies to reflect their new circumstances.

 

Since telematics insurance is so advantageous to drivers that don’t use their cars for their commute, it’s an ideal option for those who work from home. However, it may also offer savings to careful drivers who use their car often. Speak with a qualified insurance broker to determine whether switching to usage-based insurance is the right move for you.

 

Affordable car insurance in Halifax and Dartmouth, NS
If you’re looking to save money on car insurance in Nova Scotia, turn to the experienced brokers at Eisenhauer Insurance. We’ll help you find the right policy for you, whether it’s telematics insurance, cheap high-risk car insurance or traditional coverage. Contact us to speak with our team.

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