Telematics is the marriage of telecommunications with data collection. As it relates to auto insurance, telematics uses an in-car device to monitor driving data. This data sent to the insurer can then be used to set auto insurance rates more accurately.

Although insurers are leaders in understanding patterns in data, in many cases, the premiums we pay may not fully reflect our actual driving. Telematics promises to offer better insight into driving habits, often rewarding safe drivers with lower premiums.

Many insurers use a mobile app to monitor driving safety, although some devices can connect the vehicle directly.

Here are some of the driving conditions a telematics device or app may measure.

• Speed: Higher speeds can mean bigger risks, but many devices also compare speed to the speed limit where you are driving.
• Fast starts and stops: Smooth and steady driving earns more savings compared to jackrabbit starts and screeching stops.
• Swerving: We all need to avoid obstacles occasionally, but frequent swerves can indicate distracted driving. Eyes on the road.
• The number of miles driven: Less time on the road can reduce the risk of accidents. Lower-mileage drivers often save more.
• Time of day: Driving at 2:00 AM may be riskier than driving at 2:00 PM. Limit driving when visibility is poor or at times when more fatigued drivers may be on the roads.

Each insurer uses a different marketing name for telematics, but many of these devices (or apps) work similarly. Without telematics, insurers don’t have the same insight into your safe driving habits. The result is that you get grouped with other drivers with similar traits and may not be saving as much as you can. With the window on driving provided by telematics, your safe driving can earn the lower premiums you deserve.

To see if telematics is an option for you, or to learn other ways to save on insurance, reach out to your Wells agent.