Never heard of telematics? Just wait, you will. Telematics, or usage based
insurance, is the newest trend in auto insurance. Telematics will provide
your auto insurance company with real time driving information: how fast
you drive, how hard you brake, how much you drive, the time of day you
do most of your driving, etc. These factors have been shown to be far
more predictive of insurance claims rates than the factors generally used
by most car insurance companies now. that is, gender, age,where you livre,
the type of car you drive and your credit rating.
Would you be willing to let your car insurance company monitor your driving
in real time via a telematic device installed in your car? There are legitimate
privacy concerns. Where is this information stored? Who has acces to it
and for what reasons? Studies show US drivers are about evenly split on
whether they would let their car insurance company put them under surveillance.
For some, it depends on how much they might save on their car insurance.
For others, no amount of money is worth the invasion of privacy.
Is telematics the next trend in technology? We are already embrace biometric
monitoring. I'm talking about those tech bracelets that track the
steps you take every day or the amount of calories you burn and transmit
the data to your smart phone. Nobody worries about that info right? Or
do you? And if telematic auto insurance is the next trend, what's
next? Health insurance? Life insurance?
Regardless how you feel about it, telematics is here to stay. According
to an industry report by Deloitte Center for Financial Services, "The
genie is out of the bottle. The [insurance] industry as a whole is not
likely to go back to relying on its traditional methods of assessing auto
Is there a bright side? Some analysist suggest telematics may lead to the
"gamification" of driving. In other words, make the driving
experience more interatice, competitive, gratifying and maybe even fun.
Like a real life video game that provides real world incentives for safer
driving. Hmmm. I'm all for that, but I'm not sure I want to do
it at the price of my privacy. Tle