Telematics car – state-of-the-art technology in everyday life

Telematik im Auto und Versicherung

Digitalization is progressing and smart solutions are also in demand in road traffic, where users quickly come across the term telematics . Telematics is a portmanteau of the terms telecommunications and computer science ; it combines both areas. This technology has been used successfully in the logistics industry for many years.

In the vehicle, it is intended to document driving behavior and other driving data relating to the driver and vehicle . It records how carefully a driver moves around in his car and whether he indulges in risky driving maneuvers. This technology is used as part of vehicle insurance , where you can apply for a so-called telematics tariff . Good driving style ensures maximum discounts in the tariff from the car insurer.

How does telematics work in road traffic?

Telematics systems include a tracking device in the vehicle or tracking or tracking via your own smartphone. The driving data is determined using GPS; the system uses satellite signals to calculate your own position and speed. If you don’t use a telematics box, you have to rely on smartphones , because this variant is also possible. The collected data is then forwarded to a service provider via the mobile phone network . All relevant information about driving behavior is recorded on the provider’s server.

These primarily include the driver’s driving style and behavior in traffic. Complete telematics data always consists of recordings of driving style, steering movements, cornering, braking and acceleration . Excessive speed or an aggressive driver are not a plus point if you want to take advantage of a telematics tariff with your car insurance .

Telematics in the car and insurance

The system documents whether you adhere to  speed limits and whether you can demonstrate good cornering ability on federal roads and motorways. With this technology he has to prove himself on all roads, even when driving in rush hour traffic. Another variant is to use the smartphone in combination with a sensor that is simply attached to the windshield of the car.

Telematics tariffs for motor vehicle insurance

Every car in Germany must be registered with a car insurance company. If desired, customers can receive so-called telematics tariffs , where the insurance premium depends on the driving style. Previously , the premium was only calculated based on the no-claims class and the vehicle data. A possible accident usually causes an increase in vehicle insurance costs. For telematics insurance, other criteria with different weightings are included in the calculation.

The driver can view the evaluation of his trips via the app and thus has the opportunity to adapt his driving style. This means you travel with less risk and the risk of accidents decreases. Telematics tariffs allow drivers to reflect on and change their behavior. Anyone who often brakes hard increases their risk of accidents , which often happens at traffic lights or in traffic jams.

The service provider provides the data so that the driver can understand how premiums are calculated. The score is determined based on the information ; every trip affects the score. The better it is, the higher the discount from the car insurer.

Telematics for young drivers and novice drivers

Young drivers in particular have an increased risk of accidents , which is why the fees charged by most insurers are initially very high. Novice drivers are initially confronted with high costs and strive to reduce them; technology can help with this. That’s why insurance companies use telematics, which gives many drivers the opportunity to reduce their premiums.

If you want to use telematics in vehicle insurance , you can reduce the insurance premium; depending on the insurer, you have the chance to save up to 30 percent. To do this, however, you also have to clearly show how you behave as a driver in traffic.

The provider of telematics tariffs evaluates the data. The final amount and also the savings on a telematics tariff for the user are then calculated based on the collected data. The system automatically transmits the data obtained; this data is particularly protected because it is transmitted anonymously.

Anyone who is interested in telematics in car insurance can inquire about this in order to find the right offer. Providers of such tariffs include vhv and huk-coburg.

Car telematics increases driver safety

GPS tracker and telematics app

Some insurers use other techniques to determine the driving style of the insured , some companies also work with sensors or a special car GPS tracker .

The telematics box is permanently installed in the vehicle and transmits the data obtained so that the insurer receives an overview based on the customer data. A telematics sensor and GPS technology are used for this purpose. But telematics data is then recorded, forwarded and evaluated by the telematics box installed in the car. If the car insurance company works with GPS trackers, these are also stored in the vehicle, but you can choose between flexible or permanently installed.

Fixed GPS trackers

GPS devices that are connected directly to the car’s power supply, i.e. the vehicle battery , are referred to as permanently connected. They do not require regular charging and easily transmit all relevant information on a regular basis. Using the associated app on the smartphone, the driver can view his evaluations and make adjustments to his driving style if necessary.

GPS tracker without a fixed connection

Insurance companies do not use models without a fixed connection to electricity, but drivers can use such a device themselves if they would like to get an idea of ​​their driving style in advance. These trackers are charged at home when the battery runs out or powered by another power source, such as the car cigarette lighter .

Safe driving with telematics tariff

Safe behavior behind the wheel can not only save money, it also has other positive effects on life, as significantly  fewer accidents occur on the roads . In general, acceptance of vehicle insurance with telematics is higher, especially among people who generally drive more carefully.

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