Published in Clifton Park Neighbors Magazine – Winter, 2021

By Don Ferlazzo, Agent/Agency Owner

Ever wonder what determines how much you pay for car insurance?

Traditionally, it’s been based on the insurance history of you and others like you. After all, without knowing your specific driving habits, all insurers can do is put you into a group of similar drivers. Based on the history of the collective risk pool, the insurance company determines an appropriate rate which is then approved by state regulators.

If it doesn’t sound like a perfect science, it’s because it isn’t. While basing rates on things like age, sex, territory and even credit is a start, it doesn’t consider that one person may have safer driving habits than another. And if the riskier drivers get into more accidents, everyone in that pool ends up paying more as a result, even the safer drivers who deserve to pay less.

But what if there were a way for the safer drivers to prove they are deserving of a lower price? That’s where telematics comes in.

Telematics-based insurance programs have been around for years and can be used by your insurance company to recognize your safe driving habits and potentially reward you with lower premiums. The data provided by telematics helps insurers determine more accurate rates, and more progressive companies are leaning into this technology to benefit their customers.

The way telematics works is simple: Your insurance company provides you with a small device which you plug into your vehicle’s diagnostic port (usually located under your dashboard). Once plugged in, the device relays key statistics to your insurance company which are then used to calculate your discount. The better your statistics, the bigger the discount you’ll earn on your car insurance, so telematics is a great way to separate yourself from the rest of the drivers in your risk pool.

Here at Foursurance, we offer telematics programs from a number of insurance companies to our customers. By installing and activating a smartphone app, our customer can save upwards of 30% on their auto insurance based on some simple statistics:

1. Annual miles – With so many people working from home these days, folks are driving less than ever. If you’re driving fewer miles than most, you’ll achieve a larger discount in this program.

2. Time of day – If you avoid driving during higher-risk times of day, such as the middle of the night when there are potentially drowsy or intoxicated drivers on the road, you’ll qualify for a larger discount, as well.

3. Top speed – We know it’s hard to keep it under the speed limit all the time, but it’s also well-known that excessive speed leads to more accidents. With Drivewise, the speed threshold is 80 miles per hour, so if you can keep it under 80 consistently, you’ll earn a larger discount.

4. Braking habits – Keeping a greater distance between you and the car in front of you drastically reduces the chances of a rear-ending accident. A typical telematics app recognizes gradual braking vs. stopping short, so if you brake gradually in traffic and when coming to a stop, you’ll be rewarded with a bigger discount.

Telematics programs don’t just provide your insurance company with driving data – they give you feedback, as well. In many cases, you can log on to a carrier’s website or mobile app to check your data, allowing you to identify problem areas and better control your discount.

If you would like to speak with an expert on telematics and insuring your cars and home properly, contact us today for a free quote at 518-978-4044, don@foursurance.com or online via the link below.