How to Use Telematic Auto Insurance

Car insurance can be expensive and confusing, especially if you aren't familiar with the car insurance business. One new development is telematic car insurance. Follow these steps to learn more about it and how to use it.

Instructions

Difficulty: Moderately Easy

1. Know what telematic insurance is. Telematic insurance uses a black box, much like an airplane, to monitor the habits of the car's driver. Speeding, distance and other measurable parts of driving are recorded and sent to the insurance company. Your insurance company bases your rates on your habits.
2. Compare the telematic rates with your current ones. If you drive long distances at high speeds, this may make your rates go up. If you're someone that drives locally and rarely goes above 30 mph, telematic could save you some money.
3. Find an agent that can help you. Telematic insurance is a rather new phenomenon. Find someone who knows about it through a search engine like 1000agents.com (see Resources below).
4. Install the equipment. A professional must install the equipment into your car for you. The agent will tell you where to go for this service.
5. Drive safely. You'll probably have a trial period where they will test your driving habits to determine what your rates will be.
6. Sign up for telematic insurance. Keep all the paperwork you sign so that you have records.

Tips & Warnings

• Another thing you will need to take into consideration with telematic insurance is that you might get nervous from feeling like you are being watched. You are. Systems like On-Star do the same thing--they just don't tell you.
• Beware of who you let drive your car when you have the telematic device hooked up. Cousin Bob might go 100 mph down the freeway and wreck your rates for good.