We've got heaps of guides to help you find the right car insurance

How telematics reduces car insurance premiums

telematics car insurance

Until now, a few good ways to recuce your car insurance premiums  included adding security devices to your car, driving safely to increase your no claims discounts, and owning a standard model vehicle…but things are changing.

The latest way insurers can calculate your premiums is using a telematics (telematics = telecommunications + informatics) device that is fitted to your car to assess your driving behaviour.

So rather than assumptions based on a past customer data, the cost your premium can be based on how well YOU drive.  If you’re a responsible driver – you get to reap the benefits and savings can be made.

How does it work?

Telematics units on your car work through GPS. They can monitor how fast you are driving, your brake reactions times, how fast you accelerate, even how fast you take corners.

Why use it?

•    You could get cheaper premiums based on good driving
•    Accurate data showing how often and how far you drive – if you don’t use your car much then telematics could be ideal for you
•    Accurate data showing the time of day you drive – if the majority of your driving is in daylight (with better visibility) this could mean lower premiums
•    It has vehicle tracking to help with recovery if your car is stolen
•    Accident data helps in any liability disputes

Who should use it?

Currently statistics play a big part in calculating insurance costs. A 17 year old driver with a P1 licence is four times more likely to be involved in a fatal crash than a driver over 26 years. However this doesn’t mean that every young driver is reckless and should be charged high premiums accordingly. A telematics device is a good way for young responsible drivers to prove they drive sensibly and be rewarded for doing so.

It’s ideal for:

•    inexperienced drivers;
•    those who don’t drive very often (but would usually be insured based on an approximate number of kilometres);
•    and young drivers under the age of 25.

Although in theory anyone who drives well could benefit from savings.

Why shouldn’t you use it?

Telematics isn’t necessarily for everyone. If you value your privacy you might not want your insurer knowing where you are 100% of the time!

Where does it go?    

The device can go anywhere on your car – the less obvious the better. If your car is stolen, you can use it to see and track where your car is, so for obvious reasons you don’t want it in an easy-to-find place.

Where can I buy it from?

Telematics is a fairly new product in Australia and so at this time it’s not widely available. But experts expect a ‘growth spurt’ in the next 5 years.

AI’s Smart-Box Good Driver Insurance Product and QBE’s Insurance box are 2 of the first insurers on the market to be using the technology to calculate premiums.

Watch out for new telematics insurance products appearing on the market soon…we’ll be comparing them in no time.
Not keen and still want cheap car insurance? Our top saving tips can help you save!

Compare comprehensive car insurance

Are you interested in seeing what comprehensive car insurance policies we compare? Use our car insurance comparison for free and see if you can save by switching providers.

  • Highly recommended

    How is car insurance calculated?

    Insurers can’t tell if you’re a safe or reckless driver without any previous driving history, so they base their quotes on statistical data from all their customers, and work out the ris...... Read more.

  • Highly recommended

    Storm and hail damage advice

    Did you know repair bills from hail damage can be as high as $5,000, and that cars are regularly written-off due to storm damage?

    Comprehensive car insurance will cover your car for any d...... Read more.

  • Highly recommended

    Car insurance: Agreed value or market value?

    When you buy your policy you’re going to need to decide whether to insure your car for an agreed value or market value.

    ... Read more.

  • Highly recommended

    Car insurance: All you need to know

    Buying a car is a big deal and, after spending your hard earned money on your dream machine, you need to make sure you are protected in the event of an accident.

    Nobody thinks it will happen...... Read more.

  • Highly recommended

    Car insurance checklist

    Follow our checklist so you can apply for car insurance quickly and easily.

    ... Read more.

  • Highly recommended

    Least and most expensive cars to insure in Australia

    Did you know that premiums vary dramatically based on the car you choose to buy? The value of your car, safety ratings and repair costs are the main influencers to pay attention to.Here’s our ...... Read more.

  • Highly recommended

    Car insurance FAQs

    We know that your policy is confusing, that’s why we’ve provided you with a few frequently asked questions to help you make the right decision when it comes to buying your cover.

    ... Read more.

  • Highly recommended

    How telematics reduces car insurance premiums

    Until now, a few good ways to reduce your premiums included adding security devices to your car, driving safely to increase your no claims discounts, and owning a standard model vehicle…but t...... Read more.

  • Highly recommended

    Compare over 50’s car insurance

    Insurance companies use many different factors to calculate your premiums and your age is just one of them.

     

    ... Read more.

  • Highly recommended

    Young drivers: get cheap car insurance

    Irrelevant of how well you drive if you are under 25 your premiums are likely to be expensive. Here's 6 tips to help young drivers reduce their premiums.

    ... Read more.

  • Highly recommended

    CTP Car Insurance 101

    Compulsory third party insurance (CTP) or greenslip as it’s named in NSW is compulsory in Australia. Your vehicle cannot be registered or legally driven on the roads without it - and you&rsquo...... Read more.

  • Highly recommended

    How non-disclosure affects your car insurance claims

    Whichever insurance type you’re considering, it’s your ‘duty to disclose’ and best answer the questions when applying or renewing your insurance.

    ... Read more.

  • Highly recommended

    The ins and outs of No Claims Discounts!

    A No Claims Discount (NCD) is a discount applied to your premium because of good driving and good claims history.

    Building up this discount is one of the best ways you can reduce your premiu...... Read more.