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Understanding Insurance

What Is Insurance Telematics?

Telematics. It’s one of those high-tech words being tossed around these days but not many people seem to have a grasp on what it means. In relation to car insurance, telematics is a form of technology in your vehicle that can capture and process the details of your driving habits.

We’re here to further explain what insurance telematics is and how it can help you take control of what you pay for your insurance — and hopefully make you a better driver!

How Does Telematics Work?

A telematics device — more commonly called a car insurance tracker, safe driving app, or car insurance monitoring device, among other names — is installed or used in your vehicle and uses GPS or an accelerometer to collect data about your driving habits.

The device or app monitors things like:

  • Your location
  • The number of miles you drive
  • How quickly you brake or accelerate
  • The time of day you’re driving

The information collected is sent back to your car insurance company for review and — here’s the best part — depending on your driving habits, you can save money on your car insurance!

This kind of car insurance tracking is also known as usage-based insurance (UBI), or “pay how you drive.” In other words, the amount you pay for car insurance is judged by the standard of your own driving.

Usage-based insurance programs are designed to help you build safer driving habits by making you aware of when you’re making risky choices. If your driving habits don’t qualify you for a discount, you’ll know what it’s going to take for you to get one.

KnowYourDrive: American Family’s Usage-based Insurance Discount

Now that you know what telematics means, let’s break down what it means for your auto insurance.

Helping you save money and drive more safely is one of our main goals. It’s why we offer KnowYourDrive, which can reward you with a discount on your auto insurance premium depending on how well you drive.

KnowYourDrive is a convenient smartphone app that doesn’t need a separate device. That means rather than installing something into your vehicle, all you need to do is download the KnowYourDrive app to get started.

The KnowYourDrive app will monitor your driving behavior, from braking to speeding and other important actions. The safer you drive, the more money you can save on your car insurance premium. We'll use the feedback on your driving behavior to determine your discount.

If you drive safely, you can save up to a 20% discount after the KnowYourDrive trial period. And here’s more good news: You’ll get an introductory discount — just for enrolling.

There’s a lot to learn about our KnowYourDrive program — take a closer look at how it works and start saving today.

What Are the Benefits of Using KnowYourDrive?

Other than a potential discount on your car insurance premium, there are a number of benefits for using our KnowYourDrive app. First things first, you'll (most likely) become a safer, smarter driver.

Since your discount depends on your driving habits, you’ll become more aware of things like your speed, braking, cell phone use, traveling at night and hopefully learn more safe driving habits too. And, since everything is tracked through the app, you can review your driving habits to see what it will take for you to become a better driver — and to get a higher discount! Other benefits include:

  • Adjusting your quick acceleration and hard stops could also lead to better fuel economy
  • Tracking your distracted driving behaviors like texting and earning approval points when you drive distraction-free
  • Instant access to articles highlighting safe driving tips straight from the app

Check with your American Family Insurance agent to learn more about how our KnowYourDrive program rewards you for being a safer, smarter driver. Remember, you can earn up to a 20% discount on your car insurance premium!

Want to learn more about how car insurance tracking devices work? Keep reading.

*Program discounts will vary based on driving behavior. The KnowYourDrive discount applies only to the following variable coverages, which are typical for most auto policies: bodily injury liability, property damage liability, collision and comprehensive, medical expense, underinsured and uninsured and personal injury protection. Additionally, the discount does not apply to fixed fees that are part of your policy.

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Related Topics: Discounts , Insurance Terms , Car Insurance , Safe Driving , Technology