2025 Guide: How Telematics Car Insurance Can Save You Money and Boost Road Safety
2025 Guide: How Telematics Car Insurance Can Save You Money and Boost Road Safety Introduction With the rapid rise of connected vehicles, insurance companies are transforming traditional car insurance. Telematics—using driving behavior and real-time data—has become the hot topic, driving higher click values for advertisers. But does it really save you money? Here’s what you need to know before your next policy. What Is Telematics Car Insurance? Telematics car insurance (“pay-how-you-drive” or “pay-as-you-drive”) uses an onboard device or your car’s built-in system to record mileage, driving style, and location data. Insurers use this data to adjust risk assessment and set your premiums. The safer and more efficient you drive, the bigger your potential discount. Feature Traditional Insurance Telematics/Usage-Based Premium Calculation Age, model, area, claims history Real mileage, driving behaviors ...