Many insurance companies now offer lower rates for customers who give up personal information by installing “telematic devices” that track and monitor how they drive. If the customer is a safe and defensive driver, they are rewarded with lower insurance bills.
But are these trackers a good idea for drivers to install? The following is a brief overview. For more detailed information or if you have been involved in a crash, call our office to speak with an Outer Banks car accident lawyer.
What Are Telematic Devices?
Telematic devices are installed diagnostic ports, which are usually located beneath the vehicle’s steering wheel. When a customer installs a telematic device in their vehicle, the device taps into the vehicle’s computer systems to capture, store, and transmit data back to the company. Data includes the speeds at which the customer drivers, how quickly they brake, and the distances they travel. The high-tech safety features that newer vehicles have allow the devices to collect even more detailed information.
For example, with forward collision warning and automatic emergency braking systems now available, the devices can capture how often these systems were activated. This information is then transmitted back to the insurance company. When this data is linked to mapping data, the insurance company can also see what the speed limit and traffic signals were on the road the driver was on when the safety system kicked in, as well as whether the driver came to a complete stop at a stop sign or was traveling over the speed limit. They can also determine if the driver is traveling through an area with a statistically higher rate of crashes or vehicle theft.
Another option is to install a mobile telematic device by downloading an app on your cell phone. The app is synced to your vehicle and uses sensors to gather data on your driving. Although the app doesn’t have direct access to information gathered in the vehicle’s OBD-II port, it can still detect driving behaviors like sudden acceleration and hard braking.
How Are Insurance Rates Impacted?
Currently, these tracking devices are just options that customers can choose if they want lower rates. Some companies offer the lower rate immediately, while others do not offer it until they have six months’ worth of tracking history on the driver. Despite the discounts, many customers aren’t opting for these programs. One of the most common reasons cited for not participating is the concern about privacy, especially the location-tracking feature these devices have. Many consumers feel that this loss of privacy and allowing the insurance company to know where they are at any given time is not worth the limited discount on their insurance bills.
Call Our Personal Injury Law Firm for Help
If you have been injured in a car accident, do not try to negotiate with the insurance company yourself. Let one of our OBX car accident attorneys work on your behalf to get you the best possible financial outcome based on the circumstances of your case, like the $50,000 settlement we obtained for one client who suffered intense, chronic shoulder and neck pain (including a reaggravation of her prior shoulder injury) when another driver pulled out from a parking lot directly into the path of our client’s vehicle.
Contact Shapiro, Washburn & Sharp to schedule a free and confidential case evaluation. We’ll deal with the insurance company while you focus on your recovery.