Telematics technology is the combination of computer and wireless communication technologies. One example of that is GPS vehicle tracking, which is widely used in the US and in the UK. And soon, Australia is expected to follow, according to financial services firm Morgan Stanley.
The technology is an effective cost-saving tool for car owners and drivers as fitting your vehicle with it will save you a considerable amount on insurance. Only 34 percent of the car owners “partially agreed” to installing the device while 20 percent said they will think about it.
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Despite the lukewarm reception of car owners on telemetics, the financial firm is positive that the technology will soon be introduced—the only question is when. They estimate a 7 percent market potential and expect it to rise as popularity and competition increases.
High-risk drivers are naturally high insurance premium payers, but if they will consider the potential savings they can get from applying telematics, they are likely to change their mind and equip their cars with GPS tracking device.
Car owners who rarely use their cars are given low premiums by insurance companies. The insurance providers can validate this with the latest tracking technology such as Trackimo tracking unit. The device is capable of monitoring and recording the location and the distance traveled by the vehicle. Not only that, the device can also detect the driver’s behavior on the road.
The device also works as an effective anti-theft tool by prompting an alarm the moment the vehicle is taken without the owner’s authorization. Some devices have the option to remotely turn off the engine, leaving the car thief trapped inside while the law enforcement officers track the car’s real-time location using the details provided on the map.
The only concern with this technology is privacy, as reported by Finity Consulting. They said that “information collected by the insurance company could be misplaced, mishandled, or that it could be used for purposes detrimental to the policy holder’s interests.’.
How does telematics work?
Hide the device on the dashboard or rear window inside your vehicle or hardwire it to your car’s system. Modern cars are telematics-ready, so there should be no problem installing it. By installing the technology on your vehicle, you will be able to track your car’s movement and real-time location as well as driving behavior of your driver. Driving behavior means the accelerating, braking, lane-switching, as well as zigzagging.