A NEW APPROACH TO AUTO INSURANCE

ADVANCEMENTS IN TECHNOLOGY CHANGING THE WAY CAR INSURERS DO BUSINESS

- ABRAHAM JEWETT

Most Americans know the feeling. You open your car insurance bill only to find that your premiums have, once again, been increased.

No, you haven’t been in an accident, nor have you accrued any tickets. Yet, still, you are rewarded for your clean driving record and customer loyalty by being asked to pay more money.

Thanks, a lot.

And, no, drivers are not imagining things. The average annual car insurance premiums have increased by 24% across the country since 2011. This number varies widely among states, with reported increases of up to 80%.

In other words, buckle your seatbelts.

No, really, buckle up. Drivers can expect a not-wearing-a-seatbelt ticket to add about $80 to their insurance premiums. Speeding, at-fault collisions, texting while driving, running a red light, and DUI infractions, meanwhile, can add anywhere from around $300-$1,000 to annual bills.

There are a variety of ways for drivers to alleviate their insurance premiums, however, such as buying an older vehicle, increasing their credit score, bundling policies, and paying in advance.

At the end of the day, though, all drivers would agree that what is most important, yet often lacking, is transparency.

A NEW APPROACH

Enter telematics — a budding field of study that combines a vehicle’s technology with electrical engineering and computer science.

Telematics, at its core, is used to collect, send, and store data about your vehicle, and keep track of how you drive it. Everything from its speed, location, acceleration, and braking can be tracked and stored, or sent to outside companies and insurers.